However, the math is confusing me and the tax deductions.

My area of expertise is purchasing property from Tax Sale auctions.  

Closing costs: $3515 (3.5% down on FHA)Conventional 30 year @ 3.25%Income: Current rent: Lower 2BD $800 (rented MTM but I think I might be able to get $900)                     Upper 1BD $500 (I would occupy upper)Market Gross rents: $700-1200 2BDMonthly liabilities: Mortgage (P&I): $399Utilities: $150 Vacancy: $65 (5%) CapEx: $65 (5%) Insurance: $90 Repairs: $65 (5%) Property Management: Self managedProperty taxes: $408Total expenses: $1241Monthly cash flow~ $58.64/mo (Unless I can get $900 for rent then it would be ~$145/mo)My current rent is ~$500/mo with utilities.

I am wrapping up my flip and was wondering what type of payment documentation I will need for both legal and tax protection.The project involved a GC, electrician, plumber, and granite vendor.Do I need to get waivers from all these guys?

That's the whole point of the first position note, really only taxes and a couple other odd ball things can wipe it out.

Meaning how would i find the tax fees , round off the bills and all the holding fees so ill be able to put it in a report for my cash buyer since also i'll be flipping houses in my spare time so if anybody can answer this ANSWER SOON AS POSSIABLE PLEASE.

We put about $2500 and some sweat equity into the property before renting it out (some flooring, new dishwasher, new water heater, painting, etc).income: $1295expenses: $108 vacancy (guess), $283 HOA fee, $161 property tax, $14 insurance, $130 repairs / updates (guess), $480 mortgagecashflow = $119And that doesn't take management into account, which so far we'll try to do ourselves (from NH -- I know that's iffy, but we did find a high quality tenant so we're hoping that not too much will happen).

The property taxes are roughly $2,000/year.

Please share what the 'tax benefits' of an LLC are.  

Take your time and pencil out the cash flow as you described but put in property taxes and an allowance for emergency maintenance.