Those are two expensive items right there.

I'm not looking to steal "your guy" (not investing locally), but we're looking at buying the house right next door to my folks, which has been recently rehabbed, but the rehabbers concentrated on a few specific items and not on a number of other things that obviously need updated or fixed.

Here is where it really gets bad.End of first year, you are out:The original cash in the deal                 $6000Negative cash flow for 12 months            960TOTAL LOSS in 1st year                      $6960TOTAL LOSS after 2nd year               $7920TOTAL LOSS after 3rd year               $5040 (seller loan paid off)TOTAL LOSS after 4th year               $2160TOTAL Profit after year 5                  $  720 (Finally....Positive cash flow)Sorry, I don't see it.  

Newbie to investing and I'm working with a hard money lender who will provide 90% of rehab costs, but I need to submit a line item job proposal.

The 50% rule as originally used here on BP includes all expenses, with All expenses including "operating", "capital", "vacancy", and "loss to rent" costs.

Never mind the fact that the way they got there is via $20,000 of concessions, which means they were offering 1 month free most likely, and in 6 months they'll have economic losses coming out their ***.

and  this is on top of the already accumulating losses?

And glad to hear that we could take a necessity item and turn it into something interesting!  

@Chan K.as others have said here... let her go and "take this loss"  as a huge WIN !

One bad investment that leads to a financial loss or foreclosure will damage your ability to continue investing in real estate for many years to come.