Not every property is a good fit and in most cases liquidating a property that could be a challenge is often the best choice.

In addition, I know some lenders are willing to hold back reserves when you have low liquidity. 

It might be best to keep your cash liquid for a little while longer. 

My current business model is to liquidate and move on to the next deal because I've got plenty of opportunities readily available.

Agency debt is also not going to be possible under $1M (as pointed out by @Mark Allen).Best bet: Either find additional capital partners, tap into bridge loans for short-term financing (while you sort out your liquidity position) or pass on this deal. 

DFW smokes most markets when you take total returns into consideration.If you are not cash strapped or don't have liquidity problems, I would suggest starting off in/around DFW and moving out from there.

Cash doesn't change the market price of things.it gives you an edge in negotiating, because you can close faster. it allows you perfect liquidity when deals pop upcash is absolutely king because of it's flexibility.

Actually I just looked at the ingredients in the humidifier liquid I have. 

There are things that they would be entitled to in terms of a price adjustment (in your example, if lumber prices skyrocketed for a specific reason beyond his control then usually the owner is on the hook, however, there are measures to limit this exposure).A contract can be drafted using the scope of work, estimate, and schedule (you can include liquidated damages - this is a sum (not a penalty) of what it would cost you if the project is not completed on time - think daily rent and storage rates). 

Pual,We as a Nationwide Non Recourse lender require as a part of our underwriting terms that the IRALLC (or any SDIRA that is borrowing funds to purchase rental real estate) have and keep at least 15% of the loan balance liquid in the IRALLC for as long as the IRALLC has a non recourse loan in place.