Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Do you have money set aside?

I always get a kick out of people who say they would never do this or that and when you start quizzing them, they've actually never done anything. 

Purchase price: $240,000 Cash invested: $60,000 purchased this distressed duplex using owner financing for $240K and a $60K hard money loan for renovations.

Sometimes the foreclosure “rescuer” charges the borrower high 'service fees' up front and then disappears with the money without providing the promised service. .Each state has it's own foreclosure rescue/avoidance/solicitation laws.

Fortunately, we didn't lose money on this property but just broke even.

I was with them for 3 years, and during that time got 0 money on my investment, and the communication was not great. 

Only the house 5 down with the same sq ft is literally worth 100K more because the neighborhood actually changes in those 5 houses. 

And a deal in my opinion is one that will 1. pay for itself(All property expenses) and 2. pay the debt service(if necessary) and 3. put money into my pocket each month.  

@Huong LuuIn my opinion, presuming you need the money - it is better to cash-out refi the property.