The guideline for DFE states that you may cash out to 70% of market up till your acquisition cost so in theory if you could find a deal that has enough meat on the bone you could pull out all of your original funds and closing costs (not rehab money - there are other strategies for that).I've done DFE's up to a point where investors have near infinite returns because they got a return of so much of their money post refinance that there wasn't much left in the property except for 10-20k.In order to avoid headaches, just know that you have to source/document every single source of funds that made up the "cash," that you used to purchase the property.

There are literally an infinite number of ways you could break up the tasks and then divvy up the pie -- you need to sit down and negotiate until you come to an agreement. 

It essentially makes your return (if it's positive) infinite because you do not have to bring any money to the table). 

Mathematically, those are infinite interest during the first months of the loans.

Not because it is the end-all-be-all or a hard and fast rule, but because I can't evaluate a deal based up the infinite number of possible criteria my buyers may be using. 

Roughly:Purchase price $70kRehab: Estimated $35k, Actual $50kRent: Estimated $1320/mo, Actual $1400 (was able to raise the rent to $1500 within a year)After Rehab Value: Estimated $120k, Actual appraisal $150kEstimated Cash on Cash 10.3%; Actual = ~infinite (because the loan was for as much as I had into the property)During my analysis, I was evaluating the estimated CoC in relation to other investments (bonds, stocks, stock options).  10% is an okay number but not really better than the stock market.  

Return rate will be infinite! 

There are an infinite number of scenarios where people might be motivated enough to take the discounted offers.

Your profits are greatly reduced if they refi out or sell the property.Either way, whatever money you made up to that point is still an infinite percent roi due to the lack of invested dollars.

Your formula might be good for someone with infinite amounts of cash, but I don't know anyone with an infinite amount of cash.