There deffenetly is $350k houses you could flip and sell for $400, but once you get into  the $500k-$700k, people would  rather have a brand new custom home.

If it's a FSBO, the seller is also selling themselves short as neither you nor the seller have any experience (assumption on my part based on the question you asked) dealing with foreclosures, which will have (more than likely) a material impact on the viability of your transaction.

Makita never came up in the conversation, however I noticed them here and there on jobs and their customers seem to like them.

What do customers want?

Modeling a stabilized property versus a high-vacancy property requires different forecasting assumptions.

The numbers and assumptions in your report all look good - so my opinion is that 9% is a good estimate of the return. 

Market your property listings, benefit from custom offers, make use of tenant screening, and collect rent online if you’re a landlord.

That is assuming PRIME doesn't increase from here (which I think is a dumb assumption). 

Assumptions include 10% for property management, 5% vacancy, 5% for repairs, 10% for capex, $75 for insurance and $100 for utilities.

Lately, I have been traveling a lot so I'm rarely home nowadays but I was wondering if I were to put my condo's 1 bedroom as a private room on Airbnb and give the customer access to everything in the unit except my own room, do I need an LLC?