I prefer the other methods I mentioned. 

Of course if you can sale the property yourself and not use a Realtor that would be better.I hope I was able to bring some clarity to my method and that in some way it helps...

Compensating a Seller seems like a much more ethical and industry accepted method.  

But as far as all the various  formulas, scores, metrics, judgment calls, and other methods of trying to fit someone in a category goes; the ONLY thing I care about is whether I'll get paid.

Purchase Price: $65,000Projected Repairs: $80,000Projected ARV: $225k - $240kRight now I am finalizing our budget numbers on this one but the scope of work needed on this is as follows:- New siding- New plumbing & electrical wiring- New Roof (30 year composition) - New Front Porch & Portico- Replace rotted wood on small addition for the hot water heater- New Site Built Cabinetry and Extensive Crown Molding trim & builts- Open the Dining, Living & Kitchen walls to one another (Open Concept)- Increase the Living Room ceiling height to 9.5 feet- Sand & Stain floors- Replace (1) window (Amazing enough ALL the windows are in STELLAR condition!)

@Keith Belzner the method of putting plastic sheeting behind the cement board is acceptable by most codes.  

That method sounds pretty expensive.

Tax return is a good method.

@Jenifer Levini and @Dana ReganJenifer, I am about as far from a lawyer as on could be so I will walk lightly with my response and take criticism with alacrity.I have read where putting money in one LLC, and then lending to a different LLC is a method of asset protection. 

As Will mentioned you will also get tax shields, amortization, and appreciation and need to consider these factors in addition to the cash flow the project will throw off.There are many exotic methods to make money off of properties with thinner spreads too.