Here is what we do for our BRRRR projects:Buy distressed properties (cash with private lender)Rehab is 20-30K on average Rent it out at the top of the market Refinance (we created forced equity)Repeat the process Rehabbing at a better level provides higher quality tenants and higher rents.

When digging deeper, I found out that the owner has his Mother renting the unit for around $650/month.

That would Master of Bull Shi_ and Piled Higher and Deeper 

Syndication is something you usually find by digging a bit deeper.

Purchase price: $185,000 Cash invested: $106,000 Sale price: $394,100 complete interior renovation, merged two bedrooms to create master suite and vaulted ceiling, opened main floor so living, dining, kitchen and foyer all connect, in floor radiant heat (important on lower levels in Wisconsin) and custom vanities and tile in baths.

I am looking to add some square footage (add second level or add on to first floor).

I feel like you have more room to hold them accountable to a certain level of work and have clearer boundaries. 

You're analysis is right from a very high level, but there are many lower level costs that you're not considering, that Bart illustrated.

We were discussing rehabbing our first level and decided to get a line of credit in order to pay for the rehab.

In general though, from a sheer high-level observation, I have been noticing all the real estate apps on my phone notify me of "Price Drops" more often than in the past.