It sounds like you found a great value-add property with huge potential but limited resources.The question is how much did you pay for it?  

Based on limited information I would analyze it further.

I am new to REI and am trying to determine the best way to start with limited financial resources.  

@Michael Babin with the limited numbers you have given you will only lose $104 per month. how I calculated it. 50% expense= $2025 per month  left over for PI. [email protected]% = $2129.

If he has a limited amount of recent customers that's a flag.......If you're really serious about flushing out recent events go to the building department and look up recent permit applications (public record).I should have mentioned this first but the first two questions are 1) are you licensed / whose license # is going to be on the permit. 2) are you insured. 

There will still be limitations. 

I know one do = maintain a limit before you begin bidding and don't = change your bid maximum so you can stay focus and remove any emotion.

That is, if a real estate loan is originated by either license holder, there is no limit on the interest rate that can be charged.

Is it OK to say the funds are for just spending/trips/cosmetic surgery etc?

I have a complex financial picture with RRSPs in Canada, RI in Canada, IRA/401k and other stocks/bonds in the US, vacation rental US,.. while I have confidence in my ability I also recognize that there are limits to my knowledge and speed at which I can learn (e.g. tax implications in two countries, ugh!).