We anticipate the actual value to be higher since the comps were all over the place.

Assuming that you pay down zero on the loan, list as a FSBO or a flat fee listing, and do not put more in than anticipated; this is how your numbers would work. $600,000 Sales price-$1,000 FSBO or flat fee listing price-$18,000 buyers agent fee-$5500 minimum closing cost-$7500 average concessions to the buyer on a house that price range-$560,000 your acquisition and rehab costLeaving you with a profit of about $8,000Personally, that is not enough profit to make it a good deal.

As long as I can anticipate those expenses (taxes or otherwise) from the outset and the formulas spit out a positive result before making a move -- I should not get too anxious about UDFI taxation - especially if it allows for leveraging, higher cash-on-cash, etc.Thanks!!

Post-rehab rent roll was anticipated to be around $65k/year, with a value of around $300-$325k.

I am anticipating 5-8 years time.The row home is a 2/1, 1,100 square feet with a small fenced in yard.  

Purchasing property based on Anticipation is dangerous.

(that's almost half the anticipated profit per Joe's numbers)So, if anyone else had done these numbers, less commissions, sounds like 8% profit.Cost: 470k - sales price of 540k, (assumed) less 5% commissions = 540k-27k = $513,000.513k - 470k = 43k.   43k / 513k = 8.38% (gross).$43,000.00 sounds like a chunk of money, which it is.

We don't anticipate having trouble getting "into the swing of things", but the next cycle we will make sure to engage our financing partners a little earlier.

As a result, our payback will be ~4 years (based on the run rate of the existing building and the anticipated increase in property taxes).

This is going to be a rather long post as I’ll try to include the back story to answer as many of the anticipated questions as possible.