If it doesn’t make financial sense or feels too risky, there’s no shame in passing on this one.

Having no experience is risky.

Huge counterparty risk, I am just working through a scenario where a correspondent HML in the midwest got defrauded from bad diligence and their funding partner is having to clean things up.

I can see the OP giving this a shot.. but it is risky he could end up making a few bucks and getting experience might just break even or he could take a loss.. that margin is very thin in markets that are not selling as soon as you get CO  thats been one reason we have been profitable very few homes have been carried past CO so financing cost are at a minimum.. you hold a spec home 6 months past Co and every month your losing money you will not recover.

As others have mentioned the ability to gain experience without risk is very valuable even if you are not making the profit you would like.

. $50/mon cashflow is essentially breaking even and even with the $125/mon you're not cashflowing enough to justify the risk, i don't think.

It is still risky considering that there are always variables that need to be considered.  

Holding coins there for any amount of time is risky.  

He could do the least risky one, which is cash out re-fi 20-30% and use that toward a downpayment.

Experts say it can be risky for an investment fund to operate this way, since it may require ever more participants to be brought on board, rather than making money from its business.More than 60% of RAD’s operating expenses in 2020, the most recent period for which the company has released audited financial information, consisted of asset-management fees and other payments to a separate company owned by Mendenhall and other RAD executives called RAD Management LLC, according to an analysis of the financial data.Those fees and payments amounted to more than $730,000 that year, RAD said.ADVERTISEMENT“We have limited operating capital, few significant assets and limited revenue from operations,” RAD wrote in the January document, which sought to raise up to about $58 million in new funds, for a total of $75 million of company shares.