If you have owned it over 6 months, then you can cash-out refinance at 75% of the appraised value.

Actually the opposite, buy the best quality with the lowest risk you can afford.Instead of finding better deals (unicorns) focus your energy on generating cash.

Using equity from your primary residence with a HELOC is a smart strategy, and focusing on cash flow while keeping an eye on appreciation is key.

It cash flows approx $2,500/month.  

Cash out Refi)Pros:- Typically lower interest rates than the other two optionsCons:- Higher closing costs- You lose your current interest rate that is probably significantly lower than current ratesHELOC)Pros: - Lower closing costs- Interest only for what you use- You can choose to use it or not depending on your future plansCons:- It is a second lien, so they typically have higher interest rates- Sometimes it is a variable ratePrivate Lender)Pros:- Less government restrictions that you need to follow- HUGE amount of flexibility because everything on it is negotiable from interest rates, to payment options- Not required to leave 20-30% of equity in the property, and no PMI if you have less than 20% equity- Closing costs are minimal.

That's a $40,000 loss per year after buying it for $800,000 below asking price and before accounting for maintenance, vacancies, capex, etc.Here's a guide that describes what good cash flow looks like and how to analyze a property.https://www.biggerpockets.com/blog/rental-property-cash-flow...

So you are able to get the cash flow, tax deductions, etc.

This will be my first investment property and My fear is that I will estimate my cash flow incorrectly and end up losing each month.

@Mat Garcia I wouldn't sink that much cash into the property if at all possible.

Quote from @Stendjy Clerveau: I would first look at not doing a flip at all until your cash reserves are saved up more.