Seems a little higher than expected.

Depends on your expectations of a good deal?

In regards to your rehab, I recommend asking your realtors and property managers in your area what kind of rent rates you should expect depending on what kind of remodel.

@Patty PuckettYou should have the 1099 corrected otherwise the IRS will expect you to report that income on your personal return.The responsible party should be your IRA, i.e Patty Pucket IRA. 

I also think that you should expect about $100 a month in insurance.

Fact is there's a reason seasoned investors are spending over 20k a month on AdWords alone.With that said, I will inform you that it won't always work like how you may expect it to.

How much $$ are you expecting to earn from this unit?

My broker says he has worked with this lender before but this is my first private money deal so I'm not sure what to expect.

I just wasn't expecting to have to spend 5% of gross rents to mow a patch of lawn.  

6.125% is not a bad rate for a commercial/portfolio (Non Fannie/Freddie) loan.How much lower are you expecting to get by refinancing since you can't qualify for conventional?