So we pay all utilities, and that is reflected in the higher monthly rent.  

Lenders are very concerned with the difference between owner occupied and non-owner occupied which carries a higher interest rate to reflect the additional risk and require more of a down payment.You won't get any loan in the name of any new LLC that has limited resources without a personal name attached, mortgages carry a personal guarantee.

I believe you’re trying to use:(Purchase price + Rehab Costs)/ARV < 70%This is really just a rule of thumb and not terribly definitive because it doesn’t reflect your required profit.Here’s a recent thread that might explain the pros and cons to you and an alternate approach.JeffP.S.

They are not rules as has been stated but do reflect some basic realities.

I did read instances where the deposits were at the range you mentioned, I have since updated my contract to reflect $20.With regards to the purchase part, I have no where near the cash that it would take to buy a property at this stage.

Point is, their opinion may not reflect what it may be worth to you.

@Jay Hinrichs, I appreciate your response and don't mean to make this into a tax lesson.From my perspective at the entity level, the LLC treats the acquisition fee as a capitalized item (reflected on the balance sheet) and can't be depreciated or amortized. 

Local smart investors that understand the profitability of the local market vs the "imprestors" from out of state that are being sold higher "crap rates" on the wrong side of town because they don't understand what a cap rate reflects?

Anyone I refer to him reflects on me and I would like to keep my reputation with him.

All were purchased as distressed properties, which was reflected in the purchase price.