Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

As a starting point, use the 50% to estimate rental expenses and see what kind of numbers you come up with.

With that trust broken, will you trust her when you get a large repair estimate?

The workshops cover various subjects from financing, wholesaling,, estimating repairs etc.Dallas Real Estate Investors Group http://dallasreig.com/ This group meets once a week on Saturday during the lunch hour.

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

After the work is done the ARV of the house should be in the $139K range which would give me a profit of around $25K (I am estimating 4K in closing and silent costs). 

Again with this estimate it could stay the same or increase.

I will likely be making a cash offer of $43K, estimate to put approx $20k of improvements into the property, and inevitably would seek a cash out refi. 

Other than that, I've projected a rough profit estimate of $10-25k (being conservative).

IRR is far superior in its ability to account for leverage and the motions you have to go through to calculate it force you to have a deeper understanding of how the the money flows through a property.However, the biggest problem with IRR when looking at Real Estate is that so much of the estimated return is based on your exit valuation, which depending on what sort of real estate you are involved in, can be absurdly difficult to calculate.The important thing isn't to decide which metric is better than others, it's the ability to separate out your revenue, expenses and cashflow to see where all money goes.