My PM estimate a $500+ as a conservative number.Total will be $1000 gross and I would pay cash for the property.

The maximum special allowance is reduced if your modified adjusted gross income exceeds certain amounts.Phaseout rule.

This means you will not get a consensus on the topic.Large investors have legitimate need for a LLC due to the fact that they most likely have actual employees.

Debt to Income RatioA debt to income ratio, commonly referred to as DTI, is the ratio of the amount of monthly expenses you have relative to your gross (before tax) income.

My guess: no.Please note: if INVESTORS aren't generally interested in properties that don't generate at least 1% gross rent per month (fully rented out), then I reckon you shouldn't be either.

The first has a 7% rate and grosses up the loan principal by $20k over value.

A defendant would need to prove major gross negligence on your behalf which would be almost impossible if your using a reputable company and not directly involved in the day to day.

FoxConn has 1,000,000 employees

Or that $18k is gross and you can't retire on the net?

It's good you are asking for advice to learn from your mistakes,most of which were avoidable.You need to learn some of the rules of acquisition to prevent having problems in the the future.Rule of acquisition #3, "Never pay more for an acquisition than you have to".You paid way too much for a property in that bad a shape.If you can't get it for around 50% of the after repair value,let it go and find a better project.Rule of acquisition #21, "Never allow friendship to get in the way of profit".You can't make good business decisions if you are trying to keep a friendship from souring if you don't do what they want.You need to keep everything professional by only hiring employees you can terminate immediately when they fail to accomplish their tasks on time and on budget.Contractors are employees,not partners!