I would place every SFR purchased at retail in San Diego into this category.You have earned the VA load. 

@Brian Trickett, you "feel that giving Phil $10k-25k upfront, followed by $250k of your first earned $500k profit (so that you can then get your initial $10k-25k back) is a way for you to FINALLY get a nudge in the right direction"?

He stated that with the costs of the LLC setups (especially the multi-LLC setup) that it would have it's own costs as you stated and extra costs with managing the accounting.

However, someday I will move on to the next deal and the duplex will revert back to $1200.Clearly, the extra $300 boosts my real CoC return on that deal.Thank you in advance for your comments.Bob

Tearing down hazmat is different than a regular demo job so depending on the county you may have some extra costs on that side as well.Testing, clean up, and certifying costs can get really pricey really quick if you're going to do it the right way - but even after you've got it passed off by the health department, you will still have to disclose the history to renters of buyers. 

I appreciate the extra info, especially regarding brokerages and creative financing. 

@Brian Foster @Isstad Rashadeem @Tom Smith Consider this extra tidbit when evaluating acquisitions: determine if those flood zone properties can be reclassified before striking them off your list. 

How did she even earn any deposit back if her cat destroyed the place?

Should have been $1200 and $600 for room.Gross rent: $2150Expenses: $1640Profit: $500 a month + free rent (savings of $1250 per month)$6000 profit per year, $15,000 savings per year = $21,000 extra in disposable income per year.Initial purchase price of $182,000 Sales price of $326,000After realtor fees and closing costs a profit of $129,000.

At the same time, paying the extra few hundred bucks a month out of my own pocket doesn't exactly sound like a great option either.