I used a 15 year am for some unknown reason (fat thumbs maybe). 

I would want to charge around 1500 to CF 400/m which is 4800/yr. id be happy with that. leaves room to save for vacancies, fixes, random HOA assessments, but if you are out of town as mentioned then you will have a PM which will eat into that with leasing charges (possibly) and a monthly charge (more than likely) and you could see that 4800 turn into possibly 2000$/m or less. 

I figured we had a serious issue since they complained that they could not even eat in peace?? 

H also wrote that he doesn't go out to eat and drives an old car.

But I would say you need to eat most the cost of carpet. 

This mentality of hoping that he will just eat the costs on your job, is really toxic.

Purchase price: $250,000 Cash invested: $30,000 3 Bedroom Ranch, 1 Full Bath Living Room, Eat In Kitchen, Huge Yard Front And Back, Located Minutes From Transportation And Shopping, Brand New Stove, 2 Year Old Roof, New Vinyl Siding What made you interested in investing in this type of deal?

Here are a couple examples that I've worked with.Example 1 - South End of Sewell - BRRR Duplex (2/1 & 2/1)Acquisition and Rehab was $200kARV: $240kIn the deal for $20kRent Roll : $2800 a month(1400 a unit)Mortgage: $1400 a month (200k @ 7 %)Taxes: $516 a monthInsurance: $100 a monthLicences/Sewer/Gas: $20 a monthVac/Capex/Repair: $316 a month (that's a lot but lets be safe)Cash Flow: $448 + you have 40k in equity and a fat safety net each month due to an accrual rate of $316 a monthExample 2 - Lindenwold SFH - BRRR 4/2Acquisition and Rehab was $110kARV: $140kIn the deal for $5kRent Roll : $1700 a monthMortgage: $700 a month (105k @ 7 %)Taxes: $441 a monthInsurance: $90 a monthLicences/Sewer: $15 a monthVac/Capex/Repair: $200 a month (that's a lot but lets be safe)Cash Flow: $254 + you have 35k in equity and a fat safety net each month due to an accrual rate of $200 a monthThe Sewell usually has ideal tenants and very little headaches.

It is a dog eat dog business with little regard for others. 

Too much eating for the past few days.