Purchase price: $26,000 Cash invested: $26,000 Condo. 1 Br, 1 Bath. 546 sq ft, built in 1968Purchased $26,000 all cash.Cash Flow: $380https://www.zillow.com/homedetails/2241-W-Pensacola-St-APT-50-Tallahassee-FL-32304/69849950_zpid/ What made you interested in investing in this type of deal?

I will caution you on the short term rental... the city had issued a moratorium on any and all new licenses while they conduct a 9 month study, and then issue new rules and regulations for STRs.

Even if I was in favor of the new rule, they never asked me if I "live there" or not.I contacted the HOA to ask what had happened and they told me the executive board has the power to do whatever they want with the parking spots. 

@Amul S.Sure thing - Lenders go by the appraised value of the property, and lend you 70-75% of it's value.In order to do a successful BRRRR and cash out on all your initial capital, you need to make sure you can renovate and increase the value enough so that it meets this "rule", and you can get most if not all your money back and to pay back the HELOC.If your property appraises for 100k, most lenders will lend up to 70k-75k.I put the word rule in quotes because different lenders have different guidelines, but if you are looking for a conventional bank product like a 30-year fixed rate loan, Fannie Mae has their guidelines on how much they can lend up to.

. $91K - Much less then the initial down payment and what we have paid since 2007.Keep renting - We are on the low end of rent still and could probably raise if another $25-$50 per month within the next year - other expenses - HOA- 1,120 annually ; Home Warranty - $755 annually  OR something else?

As a general rule, each general partner is liable for the actions of the other partner as part of the partnership.

I know I could make roughly $400/month if I put 50% of rent away for unexpected costs. 

Not quite the 1% rule but some busy months we get close!

@Joshua Von Schlutter if you are using a conventional loan, Fannie/Freddie will allow 15% down...some banks don't follow this rule but it is possible to get 15% down on an investment property. 

I'm from Fredericksburg, a city about 40-50 minutes south of Arlington, and I can say (anecdotally) that Arlington is probably one of the most expensive places to live in all of VA.