Continue this strategy?

[Bill Robinson]

Assuming I can purchase, rehab, rent and refi out all cash outlay while retaining 10-20% ARV equity while the property continues to support > $100 a door / month cash flow after expenses. Tell me why it doesn't make sense to continue this process as an ongoing strategy? What sinkhole am I missing?

(1) Of course it fails if my evaluation of expenses vs. income are incorrect.
(2) The ARV equity is a potential sticking point and perhaps not the right word. These properties would be slow to unload to end-users because the city's population is dominated by renters. However they would comfortably cash-flow at the "ARV".
(3) The cash-out on these properties is in the area of $40k.