@Casandra M. 90% of the things tenants call about are “user error” so i have learned how to walk them thru correcting these “issues”.  

Honorably, admirably is the correct response of course.Our slogan contains three “honorable” synonyms “…Legally, Morally, Ethically.”™ So, addressing our minds from this premise, we may conquer challenges in ways unavailable from a negative space.Negotiating from a position of unfair advantage doesn’t permit negative aspects.

I always want to know why things are vacant, why rents are low etc and if I can correct those and get the place turned around then that is money in the bank when you do it!

Correction: New Jersey Hotel and Multiple Dwelling Law

Sending out direct mail is great (can be costly if not done correctly and most importantly you need to be consistent), but I would also recommend that you do some driving for dollars and buying list from listsource and cold calling the owners to see if you can start the conversation from there.

I wanted to quickly run by the numbers and get some input if 1) my approach was correct and 2) best practice for those numbers (I will be researching them myself also).

You are correct that the larger loan is the one worth 21000.

Read Tax Free Wealth by Tom Wheelright for a great explanation of why you should meet with your tax advisor first to determine the best structure for tax strategy and then have that person work with your attorney to ensure the structure is set up correctly.

@Mike Leising Simon is correct you can use conventional loans (I used an FHA for my first BRRRR).

Escrow holdbacks are a great tool when understood and used correctly, but by no means will it really fund a rehab of a property in most cases.