Did you use this as a way to accumulate money to get into investing into real estate or is this where you stow some of your profits? 

Accumulate the profits from a series of flips to generate a 2nd line of flips.  

In fact, code violations don't even have to be recorded as liens (as we know they usually don't get recorded for a year or so after they start accumulating) to attach to the property.  

I was about 6 properties into investing, both guns blazing, working half days (12 hours a day) trying to accumulate more.  

Then when we do occasionally have to clean carpet due to a dog, we have plenty of money that has accumulated from the $25 fee over several months of rentals.People are going to sneak their dog in anyway, so you might as well get some extra money out of it.

I'm planning on accumulating properties long term, so I'll recover from any dip over the long term. 

Under my understanding of your description, the cash infusion from the bank is being used to fund the project, so there will be no big post-rehab cash infusion (unless you somehow sell the property for enough to cover the refinanced loan + make some substantial profit).A possible option would be to get the property in rental shape and make the repairs over time as you accumulate cash from rental income - this would help you avoid taking on debt (and likely decreasing your monthly cashflow).

I took an economic approach rather than psych.Debt Acceleration which is taught as part of basic financial education in some countries around the world - most notably, Australia and New Zealand - is for folks who have a surplus at the end of the month and who can use either their checking account or some other repository to allow that surplus to build up and, once a year or so, apply that accumulated surplus to, for example, the mortgage on their primary residence resulting in an earlier payoff and less interest over the life of the loan.Debt "Snowball" is for folks who have very little surplus at the end of the month.

Put your grandfather's 1970s strategies aside during this time unique time in history where we're likely going to see a good, steady increase in values over the next 7 to 10 yrs, which can dwarf monthly deficiencies.PLUS, those deficiencies accumulate in what's called a PALA (Passive Activity Loss Account) which can be written off for years and even after the home is sold correct?

Shine and don't let nobody take that away from you, it really seems like real estate is the game to play, Thank god with the properties I accumulated I would say I have about 35,000 in equity.