Memphis Invest may charge more initially but they look like they're here to stay and I'm happy to grow into nicer cash flow. 

Conversely, all of your renovation, holding charges, etc. would be "cost of goods sold" and can be deducted as expenses rather than being capitalized.  

If so you cannot profit by charging any labor to yourself.

I agree with the comments above that point out that any lender who would do a loan like this (not all will) is likely to charge a higher rate to compensate for the higher risk associated with it being an unsecured loan. 

I estimate the amount of expenses I need to expense, and charge management fees accordingly.

I have decided to use my own title company, they're charging $400 plus the normal state and local fees plus title insurance. 

They may charge you a small fee, where a full set of  plans with structural and mechanicals will cost you 12-15k these should only cost a few hundred. 

@Stephanie Jamgochian we raise our rents every year, I would raise their rent a small amount and then charge a small pet fee.

Most management companies charge a month's rent to lease the property so that means you won't cash-flow until the second month.

But I'm not going to charge them an application fee or run a full credit/background check on them as long as the parents qualify without their income.