This percentage helps maintain a buffer for unexpected expenses and maximizes the chances of a profitable resale.Use Leveraging to Your AdvantageLeveraging can turn a little money into healthy cash flow and increase the potential for returns.

>appraisal just came back for $235K when we had estimated along with our real estate agent an ARV closer to $340K based on comps. in My market the refi appraisals are more conservative than appraisals associated with offers.  

The first chart shows the estimated return on a 100k investment where 100k becomes 193kA couple of questions:1.

was this by chance the Martel program ??

If you do not have the experience you need the credit, the right deal, and the capital cause chances of you getting max terms on deal 1 are small.I try to explain this to people all the time, it's not just you the borrower, it is the deal too. 

Not a chance any politcian will go that road, no way.

When I purchased it, we were only estimating the ARV would be $230,000.

The ARVs will be high by using bad comps and the rehab estimates are almost always super-low. 

Obtain estimates for planned renovations and confirm if the allocated budget is sufficient.

In 2024, it is 60%.You may also have an option of applying a different method (Section 179) that can give you 100% on some of the cost segregated components, but this has its own drawbacks and complications, so it needs to be discussed with your accountant beforehand.Also, have your accountant estimate your potential tax savings before ordering cost seg.