This is to give me a 20% profit on the money I invest.

There are lots of areas to invest in Canada where you can turn a tidy profit.

More than likely you'll only see about half of the net that they stated....if you had a mortgage on it you'd probably end up in the red every month.My guess is they took the standard rent - taxes -insurance = profit sucker formula.

We would be splitting profits 50/50.

The Operating Agreement for the LLC will spell out other agreements with members (you and your wife), and it sounds like 50/50 for capital, profits, and losses.

The numbers show a modest profit but this should be both a good learning experience for my wife and I moving forward.

Your agent should be able to tell you what is customary in your area.4) ARV - Rehab Costs - Close/Carry Costs - Your Profit = Your MAO (Maximum Allowable Offer).

My take is that whatever you decide to do to get rolling, if your numbers are realistic and they can get you a profit within your exit plan as worst case scenario) i.e. - plan B and C make you money vs original plan, go for it!

I negotiated the price 15k lower than the asking price and I now plan on reselling the property to my end buyer for a small profit.

Sounds like you weathered the storm and made a good profit on the end.