Is the insurance price correct?

These include loan payments (if you had them), taxes, insurance, HOA fees, utilities, etc .. that occur during the Rehab period and up until the property is fully rented.I understand your reasoning for the 60% LTV to gain better cash flow. 

Purchase price -85k Repairs - 4K Rent - $925 I had a few things go wrong so far, the city thought i was doing plumbing work and i had To get an inspection and work done because they said it wasn’t up to code.

For servicing, As for servicing it ranges from $15-95  monthly depending on if it's performing or non performing and whether you elect to have escrowed taxes and insurance.

If you interview for firms confirm if their insurance covers property management. 

Converted it from 4 small bedrooms to 3 bedrooms, with master bath, redid all floors, bathrooms and kitchen, all new electric and plumbing.

No title insurance, no closing, just meet up with cash and sign everything over.

There is a clause in the HOA insurance that will cover pipe repair and replacement if the building is declared condemned by the city due to water-related issues.

@Patrick Britton it varies depending on the contractor you choose, of course, but, for a 4bd 2ba sfr, you are looking at about 50k for a gut (add 10k if any roofing or tuckpointing is needed), 20-30K (maybe less if you get a discount on labor) if its just a few cosmetics but needs new plumbing or electricity, and about 10k for cosmetics only.

It depends on how you split the revenues.If the house is free and clear, you two should decide if you get to bank all the money after paying expenses (taxes and insurance) or if you have to split it somehow in favor of your rehab work or just 50/50 the whole time.Also, if your friend decides to sell it year 2 or 3, and you still haven't recouped your rehab funds, do you spit the proceeds of the sale?