.$25k in materials and laborMonthly holding costs: $557(int payments, taxes, utilities, insurance)House info as purchased:House built in 1971 - Solid B neighborhood - Great Schools2081 sq ft4 Bed, 2.5 BathNew RoofNew WindowsNew HVACVinyl SidingWork to be performed:New cabinets and counter topsLaminate downstairs and carpet upstairsNew vanitiesNew light and plumbing fixtures(tubs staying)New water heater Paneling removed from den and replaced with sheetrockWindow removed from eat in kitchen and replaced with slider to access the back yardSmall deck built off of sliderAnd obviously paint throughout.We will probably price it under market value and hope to sell it quickly(30-60 days) at $125k which would give us a profit(after commissions, closing costs, and carrying costs) of $22k-$23k.  

And Rehab Costs would be the cost to tear down and construct the new property, including all hard and soft costs that aren't factored into the Fixed Costs.For example, if I have a house that I can tear down and rebuild a 2000 sf property that would sell for $400K; it would cost $100/sf to tear down and rebuild; I'd have $50K in Fixed Costs; and I'd want a 20% profit on the resale price ($80K), my max purchase price for the tear down would be:MPP = $400K - $50K - $80K - $200K = $70KKeep in mind that the rehab costs must account for all of the following:- Site Planning- Zoning Approvals- Utility Installation- Permits/Impact Fees- Environmental Studies- Etc...If these costs aren't factored into the per-square-foot construction costs, you need to factor them in separately. 

Our appraisal came back at 170K, citing "Fair" functional utility because it is a 1 br/1ba & a recent foreclosure on a comp home lowered the appraisal value.  

.- unless you're doing most of your own maintenance, the lower maintenance costs are attractive- Older houses split into rental units often come with shared, landlord paid utilities which I hate- You'll have less turnover in a newer, nicer placeAll of that to me means more cashflow upfront which you can save up for the second rental.

You'll have utilities on the unit you live in; why is cable an income rather than expense?  

Knowledgeable, reliable and works on your budget and timeline.Michael Do (He's an active member here on BP, you can look him up) - GC - I've interacted with him in the past.

Same example as above.Old property was originally purchased for $400K.Sold for $500K$100K net proceeds (assuming closing costs included to simplify the numbers)Using all $100K net proceeds, new property is purchased for $400K.Since I utilized the entire net proceeds of $100K into the new property, what would I be taxed on?

I'm excited to interact and learn from the community here at Bigger Pockets.

Having utilized LegalZoom of course they are providing all of these additional services, which are really just contracts to 3rd party vendors.

You can act unilaterally in any way you want to manage improve and utilize the property.D.