It is just a quick check to see if you are in the ballpark or not and then you do an itemized calculation of all expenses, rehab budget and ARV to see if your ROI, cash on cash, IRR, etc meets your desires/goals.Typically, when you are dealing with properties under $200k and especially under $150k, you definitely need a 65%/70% or better deal to make that profitable as you have less economies of scale, lower profit margins for the oops and what ifs, etc.

Even if these other investors have in-house construction teams they still need their margins for F&F or desired profit.

You will probably get a 1099 from the city or county stating the amount you earned.

After a while, you will not feel the desire to be there during work, and perhaps not even desire to meet the contractor.

It was located in a desirable neighborhood and once renovated would be the perfect home fro people who desired access to outdoor activities while at the same time being with oin walking distance to a vibrant down town with great restaurants and brew pubs.

Since these funds were not earned by the newly created LLC, is the money used to fund the purchase considered a liability? 

You still have appreciation & your tenants are essentially paying your mortgage on it so you're earning equity that way too. 

It's in a desirable area so I want to purchase it and use it as a STR. 

Unknown as to the correct answer - it depends on the seller's desires, plans, tax situation.

I want to maximize my time and money the best way I can, but mostly I just want an opportunity to help property owners like myself earn more and worry less.