One initial deposit of $1600 to open account & another deposit of $150.

We did't think this was a problem initially since we knew the property would produce enough income to cover the mortgage plus cash flow.

A great way to BRRR is to form a JV with that out of state investor. when someone  has a stake in an investment   instead of being a hired gun,  they will  have the same initiative ad you  to make the investment a success. 

The initial inclination is to keep the properties as rentals, but there are several approaches available to me....

(I don't know, I didn't work it out myself)...Other than the neighborhood concern that has already been addressed, the main reason I would be against your quoted Pro Forma numbers is that at the end of the day, you have only turned your initial equity of $34k into a (hoped for) $41k equity, which is not enough of an increase to be able to continue a "Buy, Rehab, Rent, Refinance, Repeat" strategy.

Thank you all for the information.I probably should have initially noted that I am looking to get my license in Illinois.If I became licensed, would I be limited to how many properties I can invest into for myself, specifically buy and hold and for flipping?

If that is the case, the initial numbers don't support a scalable investment strategy.  

My initial plan was to purchase with cash then take a mortgage out after it is rented for 3 months then use the mortgage money and add 20% more of my cash on hand to buy the next place; I could have done that to purchase 4 houses which would have my passive income at a comfortable level.  3 of the 4 houses would have a mortgage and I would have mutual funds and 1 house to cover the debt of the 3 mortgages. 

Account ClosedA cash-out refinance within 6 months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameter;  The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).After the 6 month mark there is no restriction to purchase price and closing costs. 

The initial paperwork aspect of getting your rental approved by them can be a pain in the ***, but after that a check being directly deposited in my bank account is as sweet as can be.