All cash flow after that is split 50/50 normally.

This normally wouldn't be that large a problem but we plan on rehabbing renting and refinancing this property (BRRR) and this will affect the appraisal value.

I normally will list them at full ARV & if I don't get a lot of interest within first two weeks, I start dropping the price or offering seller financing.  

Vacancy should be part of your normal expenses so does not factor into the reno costs.

Normally investors do not want to pay off rental properties as their goal is to increase their investment income not decrease it.For a investor it is sacrilegious to have cash lying dead in a property.

That is how much the cash should earn in a normal investment.This is the opportunity value of cash which must be paid first otherwise cash is worthless.

From a strict cost of insurance coverage it will normally be cheaper that way.  

@Patrick Burand,I can see if I have a colleague up there I can send you to; however, my normal advice is as follows.You definitely need someone qualified, does not have to be a CPA, could be an Enrolled Agent or an attorney.

Mortgage, utilities, maintenance will match or exceed the purchase price and out strip normal appreciation which historically track annual cost of living increases. 

Red flags seem normal based on the value of the property.