Like I said, it's 950 square feet of paint and carpet with a 400 square foot basement with rough-ins.

Unfortunately I've never crossed it myself however some red flags would be going up in my book.

The parcel measures 12,200 square feet or a little over a quarter acre.

I got caught up in all the little details - handwritten font, yellow legal pad style paper, red colored font, handwritten font on the envelope, etc.

Not sure if I am being overly cautious but here are the numbers I am currently looking at:$74,000 purchase price ($71,000 property with $3,000 toward closing costs)$12,600 gross annual rental income or $1050/mo or 1.4% of purchase price ($13,800 potential w/ $1,200 vacancy cost)$8,100 Total Annual Operating Expenses ($1,000 taxes, $3,000 insurance, $1,000 property management, $1,800 repairs and maintenance, $300 Utilities, $500 lawn & grounds keeping, $500 miscellaneous)$5,082 Annual Debt service (20% down, 6.5% interest rate, 20 year amortization, $56,800 total loan Amount)This leaves me in the red with an annual cash flow of ($582).If I instead use your method I would have $12,600 annual rental income - $6,300 total annual operating expenses - $5,082 annual debt service (used my number because these are the current terms from my lender) = $1,218 positive yearly cash flow.After reviewing this, I guess my questions are...

We came up with the realization that since both of the bathrooms were rather small, especially the master (which used to be a jack-and-jill but I closed the other entrance off to make a master suite) that we could go a little bit more higher end because there wasn't much square footage.

Frankly, that website has red flags to me, some good information, but I also look to the meat of the agendas, techniques and methods and the equity stripping is in far left field, filing false liens, with entities not at arm's length can be trouble, it is not a tool to employ, hit bankruptcy court and you won't be looking at just state laws or assumptions or local politics from the bench.

We're trying to figure out rehab costs to add square footage.

That's a big red flag!

That is an excellent quality to have in REI.In your initial description you said, "I am pleased to say a family friend has chosen me to handle their short sale" This threw up red flags for me instantly.