So you purchased it cash and just need the rehab $?

So the rest is all cash out of buyers pocket.

Cash flow and transform the neighborhood.

And markets like Tulsa, Memphis, Nashville, Indianapolis and the like are your best bet for cash flow on holds. 

Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I’d consider using some of my cash to pay down the mortgage when I refinanced.

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.

Based on comps I could get about $2,200 a month in rent. that breaks down to :-$1,100 (+) -$600 = -$1,700 in mortgage/HEL$2,200 -$1,700 =$500.00 profitOr the Home Equity Agreement I get the $62k cash with no payment.

It's a super affordable real estate market where you can still find deals that hit the 1% rule and positive cash flow/great cap rates.

This concerns me when you state it is cash neutral because if your underwriting is like most newer RE investors it would mean you are cash negative.  

The cash flow over a long hold is tightly coupled to appreciation.