How should I best find private lenders who would offer 8% annualized with payment after? 

You pay an annual fee of $3500, they do a soft credit check, then they give you a loan in monthly increments.

It is too early for me to state if this will be a decent investment, but the projected annual return was advertised at 14% to 21%.  

Thanks,Jon Some policies require annual leases, some over 30 days, etc.

Is it simply looking at the ratio of insured value-to-annual premium?

The home is valued at about $220,000, annual taxes are $6000.

at $5.75% you'll give up around $28,750 in income annually but gain access to a net $400K in cash. 

Quote from @Scott Wolf: Quote from @Tom Server: im purchasing a co-op that needs rehab.. im purchasing the property with a cash offer..

(Typically 25x annual expenses)

It will, depending on the financing, rents are strong in that area.Let's say you take a mortgage of 600k (75% of your ARV) Taxes - 5k Annually Insurance 2k Annually Rate - 7.5% 30 Year Fixed Your PITI payment would be $4,778.62If the lender is using a DSCR of 1.1 - you would need actual / market rent of $5,256.48 to qualify for a 75% LTV loan.