We are now one week into the rehab as I type this.Current BRRR Numbers:Pre-closing Costs: $2,740Plumbing inspection (because the house needed to be dewinterized, $150)Home inspection ($525)Appraisal ($655)Electrical inspection (because power was off on the day of the appraisal, $150)CO and Smoke Alarm ($366.57)CO and Smoke inspection ($52.50)Rehab consultant ($840)Kitchen Appliances: $2,000 (estimated)Plumbing: $7,300 (estimated)Oil tank ($1,800)Water heater ($1,000)Chimney liner ($2,000)Re-piping as needed ($2,500)General Contractor: $32,000Roof replacementDrywall patching and painting of entire house (trim, wall, ceilings)2nd floor bathroom spruce-upClosing exterior door in master bedroom and finish sidingBuilding two closets in two bedroomsBroken window repairsWindow frame repairsScrape and paint area over bulkheadFinish floorsRemove and dispose drywall from basement spacesRear deck repairFront steps repairInstall handrail to basementFoundation masonry repair and paintingRepair cement stepPatch area of exterior trim near kitchenPatch two rotted window sillsCap extra basement doorFill in dining room windowAsbestos: $1,500Electrical: $2,000 (estimated)Closing Costs: $3,733Home Purchase Price: $149,000Total All In: $200,472Expected ARV = $250,000 (initial appraisal for rehab loan came in at $235,000)Amount I have invested in the deal = $50,000Expected Cash Out at 80% = $50,000The situation is still very fluid, as we still have at least three more weeks of the rehab in front of us, but the numbers thus far are still looking promising, despite all of the surprises.

I asked the first company around how much it would be for the water mitigation, patching, and painting, and the guy said anywhere from $1200-1500.

He performs a ton a searches for me both on the investing side and retail side.

This just sounds like it defeats the whole purpose of having a business entity and the need, both for legal and accounting reasons, for operations to be performed within the business. 

It came out to around $125 / month cash flow, not GREAT, but for a first property it's a base hit and gets me in the game.HOWEVER, here are the main issues that came up from the inspection that really concern me:Horizontal cracks in the poured concrete basement foundation on the back and left side of the house with what looks like attempts to patch it with stucco in the pastKnob and Tube wiring throughout the entire house (concerned about getting insurance)Galvanized piping for majority of water supply lines (low water pressure throughout house)Leaking roof from chimney (need to install cricket) and fix upstairs unit wallsOne of the furnace flues is completely deteriorated and needs replaced, currently releasing some levels of carbon monoxide into basementOne of the water heaters is from 1992Some water intrusion damage in main electrical panel and one of the breaker panel is a Pushmatic styleThese are what I conclude as the big ticket items.

By nature I'm not a systematic thinker, but I know I perform at my highest and enjoy having systems and structure.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

There is a small berry patch and veggie garden behind the house.

For instance, most of the time my properties have always been much better performers in the maintenance department than the numbers at BP would lead me to believe. 

Here's a look at the numbers outlining the sustaining performance of the property: Monthly rent: $950PM fee: 9%Mortgage amount (taxes/insurance escrowed): $535Reserve for expenses: 15% = $142.50 (a little lower than usual since we took care of all cap ex items in the rehab)Total monthly/annual cash flow: $187/$2,244Annual ROI: 18.13% We had some private investors in on this deal as well, and while we were not able to give them the bonus this time around we still gave a solid 10% guaranteed APR (~3% cash-on-cash over the 3.5 months of this project).