However, this number does not seem to be included in the total project cost.  

There are a number of purchase/sale/holding costs to look out for, that I compiled into this post here: https://www.biggerpockets.com/blogs/8814/70530-fix-and-flip-project-costs-purchase-sale-and-holdingI see that you're located in South Dakota, so in addition to those costs you'll also need to contend with the Contractor's Excise Tax, which is a 2% tax imposed on "prime" contractors engaged in "realty improvement projects" in South Dakota.

The sheer cost and volume of massive ongoing direct mail, bird dogging, etc that goes into what they do is a serious effort and one to be respected.

Hi all,I’m Ivan, 35, born and raised in California, moved abroad to Australia a few years ago for work and recently relocated to back to the states and have landed in Seattle.I recently resigned from a long stint at a major tech company where I initially started IT support, Project Management, and ended Marketing and Advertising.

If you are planning to use different partners for each project, then you could have a lawyer draw up a solid partnership agreement and put the property into a land trust with each of the partners as 50% beneficiaries.

Looking for a qualified GC in Southern California experienced with rehab projects for a flipping investor.

In need of contractor for project in Central NJ (Middlesex County) for ~1,000 sq. ft. house

Doing things in the right order matters as in most rental markets it would be harder to get good investment returns for example on refinishing hard wood floors for a rental... buyers appreciate/expect refinished floors more than the typical renter... you also would not want to have 5 years of wear on refinished floors to then put it up for sale.Do all that and in 5 years you can still decide to keep it you will likely have massively increased the appraisal value, do a COR and fund your next deal. 

Thank you for the encouragement, it definitely feels like too big of a project for our first one, but as you pointed out if the deal is good enough vacancies and setbacks shouldn’t sink us.

Purchase price $ 510,000 Purchase Closing Costs 10,200 Estimated Rehab Costs 5,000 Total Project Costs 525,200 Downpayment (36.9%) 188,000 Loan Amount 322,000 Loan Interest Rate 5.250% Total Cash Needed 203,200 Gross Rents 61,440 Monthly Rental Income 5,120 Expenses Advertising 25 Gardening 66 Insurance 250 Management Fee 512 Pest Control 50 Property Tax 638 CapExpense 512 Security System 280 Vacancy 512 Total Monthly Expenses (55.6%) 2,845 Monthly P&I 1,778 Total Cash Flow 497 Performance Metrics Monthly Cash Flow $497 Cash on Cash Return (ROI) 3.17% DSCR 1.28 Purchase Cap Rate 5.35% Proforma Cap Rate 5.20% 1% Rule 0.97%