This is not a great return, but not terrible.As others noted, there are other risks, like having the property insured at full replacement or purchase price, or if the option is 100% seller financing with no money down or very little, versus 20% traditional down payment, this can start to move it into a better investment.

Focus on Investor RelationshipsMany wholesalers work exclusively with investors, bypassing the need to act as traditional agents.

My firm has several lenders who can seamlessly close in 15 days on 'traditional' mortgages at/below market rates and we've been doing so for a couple of years now. 

I talked to my lender contact and, as Kerry mentioned above, it's pretty uncommon that a traditional lender would offer a HELOC product on an investment property (non-primary home). 

I am the first in my family to do REI and my goal is to break the tradition of working for a salary for 40+ yrs only to retire on what I hope will be enough to start living freely.

Reason why is because FDIC Bankers "Do Not" charge points on traditional programs like primary homes, standard investment purchase and refinance, Second home/vacation homes.Lenders, Brokers all charge points to meet their Loan officer compensation plan (commission).

For the ballon payment I would plan to refinance into a traditional 30 year loan.

When I had my traditional HML company and 100% of our funds were investors

Hi @Alan Asriants,I agree that the traditional BRRRR strategy is ineffective in today’s market.

This could make sense if you do't qualify traditionally, AND you plan on refinancing again within a year or so.