Each of these variables will dramatically change the advice I give the individual asking me this question. 

@Shelly CavinHi Shelly,Although 4 is the magic number their are so many variables in qualifying.

It is hard to judge how properties did in the last downturn because of too many variables to include owners living pay check to pay check with no reserves, paying 40% commissions vs self managing, location, quality, etc...

I know he's open to negotiation but at this point my eyes are starting to cross running the numbers over and over again while changing the variables. 

There are too many variables to determine pricing this way.

But be careful of the introductory rates and variable rates on the HELOCS. 

Options I have received.. 5 year fixed rate (variable after) at an interest rate at 5.75% or 10 year loan at 6.5% interest rate, both have the option to include rehab costs in the loan at 80% of appraisal..

Taking investors money is a big responsibility and you need to be comfortable with all the variables or you will find it very difficult to raise any cash at all

Details, older house, 1910, but newly renovated, I know there's tons of variables that go into homeowners insurance but for a house valued less than 80k, $1,700 annual insurance seemed extremely high to me.

I bought an REO from Bank of America that they listed at $199,000, Because I know my market and looked at Comps, I knew this property was priced a little low to attract buyers, I also know most buyers are inexperienced buyers only doing what they are told to do on the many websites and that's offer much lower than what the bank is asking and not looking at all other variables in the deal, I offered the $199,000 the bank was asking and at closing the property appraised at $225,000.