If you pull permits and renovate, both your property taxes and insurance are very likely to increase, causing your cash flow situation to decrease.

The net operating income (all expenses + taxes + insurance) of 12k sounds about right if this is an all-cash deal, but if financing is required, which is 25% down + CapEx, that beautiful 12k operating income shrinks down to around to 1.5k operating income which translates into $125 of monthly cashflow, and this is what gives me the 4.5 CoC that I was talking about.

Also, I have found errors in my last years tax return and I guess I need to point them out to him?

If it's too thin that a property tax or insurance hike takes you too low in cashflow, it might not be worth it.Good luck!

The net proceeds would be the actual amount you received after deducting the payment to the program.It's advisable to consult with a tax professional to ensure that you accurately report the sale on your tax return, taking into account any payments or obligations associated with the program.

like repairs/maintenance, PM fee, utilities, taxes, etc?

Full documentation with your IRS taxes (do you have 2023 ready to file?)

Surprisingly enough because of low taxes and interest rates the numbers in certain ways seem to work out. 

In the case of Pacaso, you only have an ownership stake with rights to use the property + tax benefits.

Funding is guaranteed through the federal government.