This is an off-market deal, and I will probably not go into contract without some inspection contingencies given my margin for error on my first deal. 

Now if I just work off my desired profit of $20k and factor all cost in I can go up to $95k which is what I’ve offered after my low ball initial offer was rejected.

I’d sell it and reinvest the profit in a better performing property.

Do you have a specific $ amount of profit you are looking to make on the deal?

If that amount is less than 100% of your initial purchase price plus rehab cost then you maybe didn’t have enough margin in the deal or didn’t make efficient rehab investments, because now you will have to put more into your working capital to do the same process again.

Once the loan is paid off it's 8600 minus taxes, insurance, maintenance, and reserves and the rest is the profit.

I'm very new to the idea of Real Estate Investing, and am driven to make it profitable while working full time.

People need to quit making choices based on fear and instead get informed knowledge that clarifies their questions to make a decision on whether  a certain type of investment is right for them.Nina I think you should stay away from the cheap and dumpy houses in marginal areas.

The remaining cash flow or any profits from a planned sale would be split amongst the investors and you and your partner in a pre-determined split.

Instead of selling my townhome and using the cash to fund my next deals (my assumption is a sale would leave me with a profit of between $50-$60K depending on final sale price, fees etc.), I am considering using my equity instead via a Home Equity Line of Credit (HELOC) to fund the next deal.