Banks love them, but they are purely speculation and pie in the sky projections of what the potential income could be one day.

Without that, the rest is pure speculation. 

Process was pretty seamless as it was purely a cosmetic flip in an affordable yet highly desirable area.

So, my ARV estimate is truly based on my own research and pure guesstimation.

In the new scenario you're maybe $200 out of pocket per month with a good chunk of that going to pay down the loan and give you equity.If you're putting 20% down on a pure investment property then yeah lack of cash flow is a problem but not so much for a primary residence with a low down payment.

After rehab, the building will bring in around $3500 per month in pure cash flow split 50/50.

I want to build a detailed plan to BRRRR to lvl 1 financial freedom, but to do that I must leave behind at least 200$ pure cashflow a SFR.

Then you can think of RE purely as an investment. 

I have worked very hard in my own career and have been fairly successful but with regards to this opportunity it is pure luck and I am very grateful for that.My parents own a home in Palos Verdes Estates in Southern Los Angeles County.

Will this be a pure investment or are you looking to buy a primary residence?