I actually lol every single time I read this under experienceRegardless, the IRR is dependent on many factors including: purchase price, exit price (this factor is the biggest contributor to IRR), rent growth strength, ability to re-position, debt terms - LTV, rate, term, IO years, amortization yearsArticles you might find useful:The Inside Track to Vetting A Multifamily Deal SponsorDeal Screening Checklist for Passive Multifamily InvestorsFocus on developing relationships with the right syndicators (full disclosure: I am one) with the right background/experience working with the right teams. 

I have been getting GC’s to give me 10% fudge factor budgets, while also getting subs to get me bids.

The business decision of whether to do that however hinges on there being equity above the 1st lien and other factors that you're likely used to evaluating.

Is that the main issue?

Hi, I am moving out of my main residence (single family home) and plan on renting the property out.

It's going to be closer to 1700 then 1500 if you factor in insurance/taxes... then figure prop mgmt fee (75% of first mo/renewal, 10% ea mo after) that's going to get you close to break even.

Plus, it lets all these newer concepts & formula marinate in my head as I figure out some key items ... mainly thinking through on what kind of real estate investor I want to be, what kind of portfolio I wish to build, and can I analyse deals properly. 

I'm currently working under a general contractor by day, a job I took with the intention of getting into fix & flip, which will be my main strategy for the first while.

Up to you if you want to hang your hat on the de jure letter of the law or the de facto realities of the situation as it stands now.

If I were investing out of my market I would be a lot more sophisticated in my research. mainly I would be watching job growth.