I add additional profit for the estimated time and difficulty of the project.

@Spencer Dalberth - be sure to message @Bernadeau C. to be added to the BP Orlando meetup and to get the details on the meeting if you haven’t done so already.

These are a few things that struck me when I read your post:While it's good to be careful and analytical when running your numbers, the specific details you gave above regarding cap rate, etc. aren't accurate.

We provided the inspection and my GC's estimate as reason for renegotiation. 

The roof in that area covers the room, and the back balcony/porch, and it is approximately 400 sq. feet.I got two estimates: 1) $4843.09 by Home Depot, the Sales Consultant stated that they need to repair my roof and the neighbor's together, they do not install new roofs on situations like mine, where the roof is "shared by two properties, due to potential liability issues being claimed by my neighbor.

Send me a PM with the details if that works for you!

I have written a detailed business plan on how I plan to start and run my investment  business, eventually bringing in limited partners.I am located in California and hope to purchase my first rental at the shift of the next real estate cycle.

I'm having trouble estimating rent b/c its dependent on the utility allowance.How do I found out the utility allowance for this property (or for my county/city??)?

There are books that help with estimating rehab costs.

The closest I get with my estimations is .65%  This is very similar to the deals I am finding.