I was wondering if someone out there with some experience could put a second set of eyes on it and see if my assumptions are close to right?

I came to the assumption that when he started the carpet on fire from his cigarette burns he was putting it out with his drinks!

The returns are low but more than $0 with idle cash.If the market does not turn, or it turns less than $20, or takes many years to turn, returns can be okay to excellent.It's hard to invest into a hot market, model assumptions that include a correction, get excited about a 6-12% IRR and pull the trigger...many hold cash instead at a 0% return. 

I know I sounded frantic in my post, but you sounded assumptive. 

If this were you, you would........Assumptions: house under contractBuyers credit: not greatBuyer has equity in primary residence.Purchase price: $365kDownpayment: 10%Rehab: $50kARV: $600-$620kBuyer has a HML willing to do 10% down on this contract.

Thank you everyone for your replies it looks like my assumptions are pretty much confirmed.

Instead of selling my townhome and using the cash to fund my next deals (my assumption is a sale would leave me with a profit of between $50-$60K depending on final sale price, fees etc.), I am considering using my equity instead via a Home Equity Line of Credit (HELOC) to fund the next deal.  

Most loans issued to owner occupants have the assumption (if not outright requirement) that you are going to live in the property for at least 1 year.

Based on your financing assumptions, what will the monthly cash flow be?

But I'm only paying on a 40% expense ratio assumption."