Is he talking about cost based on what the total cost of the property would be over time, or just what the total cost of the property would be to the REI over time? 

The 30% structure ratio doesn't cover cost of replacement of structure/building and really limits my depreciation.

I'd be happy to help you with that and also run you through closing costs here in the city of Chicago as well.

if the  138K heloc is ample  for your needs and if the 7.6%  isnt a teaser rate - use this one ....also make sure you are  familiar with  1) costs for each  2) required payments 

For personal expenses, like medical bills or living costs, you would use the funds you’ve drawn from the LLC after they’re in your personal account.

This will help you see if your land cost and build will pencil in.

If the property needs capital improvements and as it stands is worth over 125k I could see a lender potentially issuing a rehab holdback against the ARV..

However, from a rental perspective, there is potential due to the underlying fact that no one wants the responsibility of owning there own home.

After hard money and buying/selling costs, I'm having a hard time getting my numbers to work 

But it's walking distance to the beach, in a great location, and had tremendous potential as a STR (which was the primary goal) and huge upside for appreciation.The only things I would rule out, and would advise my clients to consider walking away:  Major basement water problems, significant structural issues, and evidence that prior work was shoddy, or that work was done to cover up a bigger problem.