So, if your buyer is buying for cash, you might be okay.  

However, with the projected negative cash flow and uncertainties of remote management, consider the financial strain and risks.

Purchase price: $209,000 Cash invested: $28,000 Sale price: $880,000 This was the house I grew up in.

I would think of this problem differently: I might encourage them to explore ADUs... this would give them an additional stream of income and would likely only require a relatively small chunk of money in their savings (relative to the total cost).If they could partner with someone that has experience building and/or flipping (to qualify for the construction loan), then cash them out with a 30-yr DSCR loan (and use that as the builder's profit), then they could rent the property and enjoy the cash-flow.

Seeking a higher LTV cash-out refi.

I plan to upgrade to 2 bathrooms after the cash out refinance.

(online payment, venmo, cash/check, etc).Please provide proof of utilities paid on time and in good standing for water/sewer and trash/recycling.Are there any unresolved tenant disputes, outstanding repair requests, or complaints from any existing tenants?

As it is now, the cap rate and cash on cash return is not great once I calculate it out.

What you're seeing is a lesson I didn't learn until after I'd lost a lot of money: It's really, really hard to find properties that cash flow well.

I have a friend who purchased a distressed property with cash and is looking for a hard money loan to complete the rehab.