It makes the deltas look much better, but is 75% to 80% is more realistice and would still make the same argument. 

The money is always in the Delta to the market.All of us look at the same thing, but we don't "see" the same thing. 

Its just part of how we do development.. you cant take the cash flow game and make any sense of these types of transactions .. apples to oranges as it were. for instance I have a 117 acre parcel optioned at 50k an acre.. when it ripens will will be worth over 600k an acre.. and we have 1.5 mil in cash in it so far.. is that a great use for 1.5 mil don't know.. but on top of the delta on the dirt we then build homes for another 5 to 7 years and there is another 50 million in it.. so who knows.. these are small partnerships I put together with those that don't need cash flow and want small investments that have 10X returns over time totally passive.. 

I am a big fan of multifamily properties and continue refinancing them anytime my equity goes over 50%, bring it down to about 30% (or the least the bank will allow me to be) and take the delta and purchase more properties.Hope this helps.

You are going to see a lot less flow than the 30 degree delta they use for marketing.I do tankless in higher end places to free up space/nicer looks/ advertise unlimited hot water.  

for new construction development extra.. it makes a HUGE difference I can tell you.. and I had 30 million out with them that I used to loan to flippers and I made the delta.. that was in my HML company and that was 5 different banks all same facilities.. 

No problem lol 👍🏻👌😀Let’s just ignore the bigger issues that are going to cost us more money then some nonexistent rent delta in a flat market

thats my heart burn.along with folks that get into this thinking its a no money down get rich.. those tend to not intentionally get into trouble they are just under capitalized and so they get into a deal with little money out of pocket thinking a 100 dollar a month delta is great.. first time renter does not pay and they have to evict or renter does major damage they no longer have the funds and the seller ends up in some bad position.then you have sellers that do this and want to buy another home and since the original mortgage is still on their fico they have a hard time explaining it or meeting DTI. 

Or you can just be above average.Yup on the remodels i have done in Charleston i have made no less than 50k per project and the new construction averages about 100k profit per house and up.. so yes i know some only make 15k but .. to compare that to just putting cash out to create 200 a month in delta.. only way this stuff works if you can find deals with a ton of equity.. to just buy sub too and have very little equity to me is a fools errand unless its in known areas for decent appreciation.

Auction.com has an estimated ARV of $600k, but we are taking that number with a huge grain of salt since any comps close by seem to be more around mid 500s.A quick plus delta of the situation as we see it:+ great location (corner lot, water front on a small lake, good neighborhood with very nice neighboring properties, close to main road).+ REO with a motivated bank seller (assuming they will be dropping their minimum each time they put it up for auction?)