Feel free to PM for more details on the project. 

I under estimated rents and over estimated expenses.

Total Insurance Estimate $ 262.50 Current rent $ 800.00 $ 9,600.00 $ 10.40       $ 21.88 Less: vacancy allowance - 10% $ 40.00 $ 480.00         Net Rental Income $ 760.00 $ 9,120.00   Property Taxes 2.5264% $ 505.28 Plus: Other Income $ - $ -         Total Income $ 760.00 $ 9,120.00 $ 9.88                 EXPENSES         Property Management $ - $ -         Repairs & Maintenance $ 100.00 $ 1,200.00         HOA $ 250.00 $ 3,000.00         Advertising & Legal         Insurance $ 167.00 $ 2,004.00 $ 2.17         Total Expenses $ 517.00 $ 6,204.00 $ 6.72                 Net Operating Income (NOI) $ 243.00 $ 2,916.00                 Less Debt Service (PI) $155.06 $ 1,860.72 $ 2.02         Less Property Taxes $ 42.11 $ -                 Net Cashflow $ 45.83 $ 1,055.28                 Operating Expense Ratio 68.0% (Total Expenses/Total Income)               MORTGAGE INFO         Total Loan Amount $ 20,000         Type of Loan Seller Financed         Term (Months) 240         Interest Rate .07         Down Payment $ 2,000 10.00%         Monthly Payment (PITI) $155.06                 Purchase Price $ 75,000         Closing costs $ 3,000         Rehab $ 7,000         Total initial investment $ 85,000                 LTV 27% Loan Amount/Purchase Price         Cap Rate 4% Annual NOI/Price         Cash-on-Cash Return 146% Annual before-tax cash flow (i.e., NOI)/Down payment    

@Steve Vaughan, thanks for the detailed description.

I have some questions about how our profit/ payment structure is setup, here are the details:--- 4 Owners in an LLC taxed as an S Corp--- Myself and 2 other people have 30% equity ownership and the fourth has 10% equity ownership.Currently we have agreed on that the GC/ my friend/ business partner who is a 30% owner, gets paid every two weeks an hourly wage but that payment is deducted out of his profit he receives at the end.Should these hourly wages not be deducted from his profit and he makes profit plus hourly?

This is the scenario:Property purchase price - 60kRehab estimate - 40kARV - 150kFor the BRRRR strategy to work, the refinance has to be 100k.

He gave an honest price estimate, followed by a quote, for a waterproofing system.

So I am planning on figuring some type of possible commercial activity tax depending on City/County/State regs (payable by the 401k entity) and detailed on its own tax return, based on my BP education in process.    

Search BP forums for "drive for dollars" to get more detailed ideas- Buy a list of multi-family properties with absentee owners and market to them via mail- Try to find another agent that is more investor-aware that can help you search- Find a local investor group to network (you should be doing this anyway) and try to find deals

Here are the details (hopefully this covers everything)Purchase Price - Offered 70k but most likely going to be 75kCurrent Rent: $850 but area looks like I could get almost $1000Repairs: $10-15k possibleA home across the street was sold for 125kI think it meets the 1% rule so want to make sure that this is something that makes sense.