Rehabbing Value?

[Tyler Carpenter]

I know that usually when you buy a foreclosure for rehab, you are getting a good deal. My question is that if I buy a place and rehab it for 50% of the ARV and get a refinance, should my NOI still give me a positive cash flow after I have taken the equity? Or is it a ok to be paying a little bit each month and figure out that down the line, I will be breakiing even and then back into the positive cash flow?

For example: Say I buy a place for 70K and i put 30 in it for rehab, my ARV is worth 200k, and I take 170K out on a refi, should my NOI reflect a positive cash flow on the 170k that I refied on since I bought the place at a "wholesale" price? Or is it good if Im breaking even or just paying a little each month, because in theory I have made 70K in equity that can be used to start another rehab project. Any suggestions or help would be much appreciated. Thank