I have been buying and rehabbing properties for a few years now. My first was a BRRR. It went well. My second was a flip it did ok but didn't like the added stress of having to deal with agents, the buyers, inspections, banks etc etc. I have 2 more projects in the works. My plan was to flip the one because the neighbors are a mess and I don't want to hold the property. The other I am rehabbing and will be doing a cash out refi then renting out. I also am a general contractor, so I have been doing all the work myself and paying myself.

Generally it is taking 20 -25 k to get these properties up to par once my labor is factored in.   Therefore I am generally having to take out the full 80%ltv.   Which leads me to this question.

 If I am having to borrow money to buy the places, then borrowing to pay myself back for the labor in the rehabs.  It seems that my whole income is now reliant on me leveraging myself or borrowing money.   I was raised conservative and something doesn't seem right.   However when I run the numbers everything seems to work.      So I dont know why this is causing so much anxiety.  Anyone have any thoughts?  It also strikes me as odd that I don't have to report any of it as income... also seems really weird, I guess because I now owe this money?

I guess in another words even thought my bank account continues to grow and my cash flows will continue to increase,  it seems this will be offset by greater debt and liability.