This seems slow compared to very active investors, however this is building me passive cash flow for my future.

Compare your cash outlay of a down-payment and closing costs versus the down-payment, hard money fees, interest and closing costs of fixing up a distressed property.You may end up with more built-in equity and a slightly higher return by fixing up a property yourself (maybe), but your risks and time invested go up too.Continued success!

The gross building area must be consistently developed for the subject property and all comparables that the appraiser uses.

I initially planned on getting out 40K of profit; looking at the current comparable now I am pretty sure I can get 80K to 85K out; no problem there, but I am starting to question if it is a good idea to flip the property at this point, or is it better to hold it and find financing to get my money and my originally planned profit out to reinvest while holding the property and still be able to make a small cash flow.

Gary, It really depends on what comparable used properties are selling for in your area.

The 50% rule is a rule of thumb, so you should check the actual expenses to get the real cash flow and returns on that property.Also, don't value the property using the cap rate since it is a 'residential' property that is valued using the comparable sales approach.Also, I would run your numbers using the property taxes without the exemption.

Some folks use comparables of per unit cost then evaluate from there.

This is done as if there were no lease involved at all and there is no longer any reason to compare rents and credits under any future appraisal.

The advantage of this is it is their job day in and out to qualify borrowers and if they have a positive track record your money is fairly safe with them, compared to you trying to do it yourself and getting taken.

/sarcasmhttp://www.propublica.org/article/bank-of-america-lied-to-homeowners-and-rewarded-foreclosures