Maintenance:     468/mth          5616/yearProperty Mgmt:  468/mth          5616/yearWater/Sewer:      240/mth         2880/year  {this figure was missing in your OP}Electricity:           100/mth          1200/year {there will undoubtedly be house meters}Gas:                    ??

Here are the stats:Purchase Price: $40,000 - Appraisal: $34,000 - Down Payment: $12,800Current Rent: $600 & $475 = Total of $1075/moVacancy Factor: 1 month ea unit (-$90/mo)Mortgage: $180/mo (Only $27,200 based on appraisal)Property Taxes: $65/mo ($800/yr)Management: $65/mo (6%)Gas & Electric: $0 (Tenants Pay)Insurance:  $55/moWater/Sewer: $70/moMaintenance: $80/moReplacement Costs: $105/moTOTAL INCOME: $985  TOTAL EXPENSES: $620  CASH FLOW: $365/moClosing Costs: $700Return on Investment $365 x 12 / $12,800 + $700 = 32.4% ROIInstant Net Worth Loss of $6,000The appraisal is fairly low as there are a lot of cheaper single family houses in the area and this is technically only a 2 bedroom house.

For example a gallon with gas costs 6,6 dollars in Norway:$The new tax rules will not be effective in many years still.

They want to know that you've been through what they've been through or how you can help them solve a problem, pain or validate their path.

Grocery stores and gas stations don't "work something out" to give people free groceries and gas. 

@Nick CoonisYou bring up a valid point.

Disclaimer:  I will seek valid legal counsel when appropriate --  just trying to vet the conceptUnder the BRRR strategy if I had a checkbook IRA could this be used to purchase / rehab then before or right after Rent can it be purchased from the IRA by a (my) separate RE Property company --  much like a flip and eliminating the need to season?

If you have a valid A-B contract, and a valid B-C Contract, Opened in a legal escrow, then they will provide the "instant funds" to fund your purchase, allowing you to buy the property, and then instantly sell it to the end use buyer.  

That being said, his experience and number crunching has a degree of validity to it.Like others have said in the comments, his numbers on costs seems high on some lines and his numbers on lifespan seem low.

Verbal offers in some states are deemed to be valid but not enforceable in a court of law.As mentioned in some states if a seller in writing instructs an agent not to present offers below XX amount or terms then they do not have to.