For an investment property, Wells Fargo has the following option:Purchase Price: $295,000Market Value: $335,000Investor Down Payment (15%): $44,250Investor Loan Amount: $250,750Investor Rate: 30 Year Fixed 5.375 (APR 6.030%)Principle & Interest Payment: $1,404.13Property Taxes: $307.29Monthly Mortgage Insurance: $127.46Insurance: $72.43Estimated Closing Costs (1 time): $5,689Estimated Closing Costs (prepaid items): $2,070Total Monthly Payments: $1,911.31Monthly Rent: $1,650Although this deal does not provide monthly cash flow under this scenario, there is potential for equity growth through appreciation and purchasing under market value.

For example, I think a negotiation practice (see the book Getting to Yes, etc) where you could point to some objective data that justified your terms, such as the price reduction, (like the market sales of similar enterprises, some deferred capital expenses, needed upgrades, etc) might have strengthened the offer.

If you laid out the 25k in rehab costs and the 5k down out of pocket, you will get that back, plus 95k remaining principle, plus 10k profit out, minus holding costs.  

I’ve also been looking into BRRRR… Maybe I’m suffering from the shiny object syndrome, Yikes!!!

The principles are similar to Ramsey from what I have heard, but I found the information in Dani Johnson's First Steps to Wealth book very valuable.

what % of cash flow would you suggest is a decent amount on the principle? 

Built: 1980Type: 4 Unit Multifamily (3 bedroom/1 bathroom)Purchase Price: $400,000Market Value (appraised): $400,000Down Payment (25%): $100,000Loan Amount: $300,000Interest Rate: 30 Year Fixed 5.0% (5.074% APR)Principle & Interest Payment: $1,610.46Property Taxes / Insurance : $645Estimated Closing Costs (1 time): $10,307Lender Credit: ($1,375)Total Cash Needed to Close: $108,932Total Monthly Payment: $2,231Monthly Rent: $3600 

There's nowhere else in the world where you could legally invest $5K and get a $6K return every year (plus the principle the tenants are paying down). 

I'd suggest evaluating his future tenancy on his objective behaviors.

The only costs that are NOT included in operating costs are debt service (principle and interest), capital expenses (new roof, new water heater, new HVAC, etc), and taxes and depreciation.After including all operating expenses, your NOI would be much closer to $1200 and then you deduct the mortgage payment (remember the taxes and insurance are already accounted for).