With a contractor on board I’m hoping that will alleviate the most difficult part of the equation.

You should also factor closing costs into your equation as well (I am overly-conservative and always factor that in) but even then, this would still be a great buy assuming you could get it rented for $550 or more per month

That means you need to find a deal that has a cash on cash of much higher.. if you find a deal that is 12.5% cash on cash you can ask for 20% share as the 80% equates to 10%.

She qualified for the 211K, but 245K was outside her comfort zone and went over her allowable DTI (debt to income ratio), but adding $750 per month in potential income to the equation made the 245K property doable.

Many of our clients that are investing for current cash flow like the 30yr term because of the lower PITI, which (all other things being equal) should equate to higher net monthly income.However, especially for those who don't need the income right now, I often recommend using a shorter loan term.

I equate this to dripping with dividend paying stocks only in real estate where you physically own something other than a piece of paper.

The only thing I would add to Noel above is to factor in the rehab amount in that equation. 

George, that is an interesting equation............equals about a 1.5 rule?

I hope your Loan Officer put that into the equation before executing all this.I hope this helps.

I know this does not always equate to quality, but I'm wondering why properties are so cheap in the area?