And the standards evolve over time.In neighboring Santa Clara County (California), it has been 3% as long as I have been involved (20 years)Here in Santa Cruz County, the standard used to be 1% upon acceptance of the offer and increase the deposit when the first contingency is removed to 3%.I write "used to be", because at some time between 2007 (when I did my last contract with the 1% increased to 3% deposit) and 2012, agents in Santa Cruz adopted the Santa Clara style of full 3% upon contract acceptance.I suspect that your agent calculated 3% = $3000 and change, and he rounded it up to $4000, to show financial strength.That can make a difference.I recall writing an offer in 2012 on a fixer upper that was listed for $540k (worth $800k after $100k repairs).

Achieving that goal requires income separate from a W2 job. 

I think there are many clothing styles that would accomplish this that could be based on your lifestyle and your direct role in rehabbing/maintaining/managing a property.

So, if I were to achieve this investment result, profit would be $112,000.

There is no doubt in my mind that if you can find the deal, rehab, rent and manage for yourself you can achieve these numbers but going turnkey would be very hard.

Once you know what you want to achieve, then set a plan.

The ARV seems very achievable and the rent actually sounds a little low to me. 

We've done two bathrooms recently using this tile for the walls:http://www.lowes.com/pd/Style-Selections-Blairlock...Yes; it's from Lowes; Home Depot may have something similar. 

I see this as a better investor style for myself.

Also pay attention to the types of material and style of house that are selling.