I thought it interesting that none of the lenders seemed to care that some of the borrowers would obviously lose money on the property they presented.

This is a hard one for people to work with since a lot of investors that do not have a lot of experience do not want to get a deal, not know the full rehab, and fear that they will lose the deal/EMD. 

It will likely cost more than $85K (or at least close) and you will lose the garage and are not acquiring any land for that cost.Again I do not know that market but with negative cash flow, rent growth below inflation, and appreciation below inflation I suspect you need a killer value add for this to be worth the effort. 

When you let emotion enter into it, that's when you lose $, so ingore the high-standards that your parents have and seek properties that cash flow positively and have a potential for appreciation.

Long story short, in most cases the lender can convert your line on a whim if they really want to, meaning you would lose access to the undrawn funds.

Then use a small chunk as "learning money" so if you don't lose it all, it won't be detrimental.

So it's weighted returns. 

Every day you wait is a day you lose real, tangible money. 

If you have proven you can take private Money at 12% - 14% and use it to make a 25% - 40% return then it's a no brainer for all parties involved and if listening to three podcasts, reading four books, and paying 10k to join a mastermind was the recipe then the line of ppl wanting to do it would stretch around the globe.If you are doing a fix n flip right now and it's a failure and you either lose, get stuck in it, or breakeven - the chances of the determinate factor being the lending is tiny.How do fix n flips go bad....?

You will lose money if you get a 3% appreciation over 2 years and sell it.