I'm buying a foreclosure for $84K, ARV should be $125-$130K based on comps, maybe a little higher based on quality and condition. 3/2.5/2 1720 Sq Ft, 1988 construction.

The loan package consists of a 6 month IO const...

The reason to do it is to maximize your COCR, which will always be higher if debt is taken on smartly.

Ideally you wouldn't have to rollover your profits every time and just use your start up capital, but if you don't have that capital you are basically rolling over your profits to put together that capital and then maximize your profits by financing your own deals.

But a couple significant things that turnkey providers are exceptionally good at (or should be) are 1. finding deals, more specifically being able to negotiate insanely good deals so as to maximize their profits later, and 2. being able to rehab thoroughly and to a nice quality but very cost effectively.

If you want to maximize rents you need to meet or slightly exceed what the market offers.

Shouldn't I be trying to maximize my profits?

There seems to be a fine line between managing turnover and maximizing the potential of the building, which I plan to keep for many years.

I have a couple friends where I am maximizing on wholesaling..

They also have the option of spending their money and fixing the property to market standards, so they can maximize the sale price.

To own the minimum cash flow properties debt free that maximizes cash flow while minimizing landlording headaches with the ability to pay all monthly expenses.