I live in Phx,az and recently friend of mine sold his bank (ex bank of america) literally as is and profiteed $300k  , he purchased it right out cash last year (I think) and it was in real bad shape in a shady part of...

@Gregory CallowayPay the contractorOnce you try to save the few extra dollars by buying material , you’ll eventually pay more than initially quoted because of acting as the GC of the job site .

Also the sender has to initiate the process so your tenants would have to do that each month.

Initial purchase to buy/rehab should be around ~15%.

CES often have an initial rate that is lower than a HELOC.

Initially, I want to buy a little condo and rent it out, to start cash flowing.

The ($597k) is the initial equity invested, the $220k is proceeds from a refinance, and the $1.2 MM is sale proceeds. 

**Lower Initial Prices:** Buying early often means securing a unit at a lower price compared to completed properties.

The structure we landed on was as follows:- Fixed Builder fee of $300k (each project varies but are 2-6 units, and 5,000-9,000 total finished sq ft)- Fixed Return on all my initial capital invested of 50% (plus return of 100% of initial capital)- Remaining Profit Split of 60/40 (60% to me, and 40% to him)I understand a lot of this hinges on how accurate the proforma is and how close we can get to actually hitting our development costs estimates, build cost estimates, and sales per sq. ft. estimates.

@Dave Skow Exactly, the 95% LTV is what attracted me initially.