Its a math problem.

Not likely.My back-of-the-envelope math shows you cash flowing ~$60/month.

A HML with the numbers you presented would eat you alive (do the math at 8.5% and 2 points on the 700k plus 25k in repairs and you’ll see).

Simple math tells you I will get back all those "losses" within 8 months time. 

I'll never know, but I'm happy because I followed the math and got the deal.Just be consistent with how you analyze properties and make your offers.

I'll let you do the math, but essentially there is no benefit, your SF seems to indicate you could get 2 on the small parcel and 5 on the larger without doing anything. 

Then it's simple math: Does the sum of the parts equal more than the sum of the whole? 

I ended up making my time into fun math:(Cost to have Contractor do it) / 2 = Fun money!

If that's not specified in your contract I don't see how you can be held legally responsible for them, and the same goes for his $2,800 in marketing fees.If he actually spent $2,800 in marketing with a $2,500 flat fee commission, he's either nuts or really bad at math. 

The structure costed $200,000, so the math should be:Realized gain will be $2,000,000 - $300,000 = $1,700,000Long term capital gain tax will be $1,500,000 x 20% = $300,000Depreciation recapture: $200,000 X 25% = 50,000Total tax due: $350,000Am I right?