There are limited circumstances in which it may make sense. 

When doing a BRRRR, it is my understanding that you're limited to pulling out up to 75% of the ARV.

@Cameron RileyPretty sure my free google limit is like 15Gb before you need to buy more.

They are in a market where you have a very limited amount sellers you have to be able to compute multiple factors per transaction and you have to spend money on marketing. 

@Justin MilesMedicaid is for people with limited income, not wealthy real estate investors with living trusts.

It sounds like you found a great value-add property with huge potential but limited resources.The question is how much did you pay for it?  

Based on limited information I would analyze it further.

I am new to REI and am trying to determine the best way to start with limited financial resources.  

@Michael Babin with the limited numbers you have given you will only lose $104 per month. how I calculated it. 50% expense= $2025 per month  left over for PI. [email protected]% = $2129.

If he has a limited amount of recent customers that's a flag.......If you're really serious about flushing out recent events go to the building department and look up recent permit applications (public record).I should have mentioned this first but the first two questions are 1) are you licensed / whose license # is going to be on the permit. 2) are you insured.