To add additional context,  I would personally be more willing to sign my name onto a $6M mortgage collateralized against a $10M asset in an "A" market that has historically low vacancy rates, no deferred maintenance and is located in a stable market with a rent roll that covers the debt services and operating expenses with reasonable cushion for reserves than sign my name on a $90,000 loan collateralized against a $100K property in a C/D unstable market with high vacancy rates and where capex will disproportionately impact operations.

You are right, the current ARV is probably right around the total of purchase and reno, which does not justify for a flip in this market, assuming there's no potential unforeseeable costs, which left no cushion.  

It all will come down to the financials on these deals, and with a larger mortgage, expect less cash flow, so if I were your agent, I'd be focusing on making sure you have an income cushion but giving a broader focus on appreciation.

Sometimes 5-10% is safe but if it’s your first deal you want to bump that up more unless you have cushion in your numbers or in your own bank account.

I'm looking to cover my mortgage plus about $1000/month cushion.

If we have that cushion, we can push these guys out.

If you are spending 325K on buying and 200K on rehab all in you are at 525K, you'd ideally need the ARV into the 600/700K range to give cushion and room since I would assume you would do a refi at the end.

While your current rental supports a higher mortgage with positive cash flow, you’ll want to ensure you have enough cushion to cover unexpected expenses or vacancies on either property.

Diversify Your PortfolioA diverse portfolio provides a cushion against market volatility and allows you to scale more safely.

A few high-appreciation properties in the right markets could increase your net worth significantly over the next 5–10 years, especially since your cash flow situation allows you to absorb some temporary fluctuations.With a debt-to-equity ratio of around 55%, you’ve built a good cushion of equity.