The insurance company totalled it and only gave us $15k ( yes the policy was for only 15k the person who owner financed the place to us bought that policy and we never bother to check it).Now we clear the property and I listed it for 27k, was under contract three times but for different reasons it fell out and didn't sell.

Hi Lucia,I totally agree!

They’ll make at least six percent of the total fees, maybe more if they find the initial seller and the ultimate buyer.

Long story short I have a potential deal for my IRA that I am looking at.Here are the figures: Area: North Phoenix (North of Phoenix Mountains Preserve)Condo, 2 beds, 2 baths at 1134 SFSale price is $112,000Downpayment is 10%P&I is about $510, Other expenses (Vac, Cap ex, Repairs, HOA, PM, Ins, Tax) is $583 for a total of $1093. 

If the QI is willing to give you your money at any time that would obviously be constructive receipt. 

As an example my last flip of a 1500 SF house went as follows:Full cosmetic rehab -$22K, added bath for the master - $5K, and some roof repair and siding replacement -$1K for a total of about $28K.I'd budgeted for $25K ($30K max with my buffer) , but decided to add the 2nd bath which added about double the value of what I spent. 

Obviously I will bounce this off my attorney tomorrow but that still puts me in the situation of possibly having to evict the tenant if they can afford market rent.

How are the Total Annual Expenses in Year 2 and forward calculated?

Obviously, we’ll sign papers so this is agreed upfront.

I'll get the roof checked out during the inspection.Here are the numbers:Purchase Price - $191,000Comps - $195,000 - $205,000Taxes - $2302Insurance - $950Utlities  - $0 (tenants responsiblity)Total Monthly  - $1050Rent - $1650-$1800 - I'm thinking closer to $1,700.Total cash flow = $650With vacancy reserves, I'm looking at close to $500 cash flow monthly.