So if you are anticipating higher rents and therefore higher income next year you may want to wait till then if you are trying to maximize the amount of the cash out refi.

Price cheaper with cash sale? 

Purchase price: $160,000 Cash invested: $35,000 Another 1% single family deal in a transitional area creating long term wealth

The monthly payments are great, but the issue I am running into is what to do with idle cash.

During this renovation period would you, as the lender, want an Actual Cash Value or Full Repair Cost policy in place?

I was able to figure out that they had come upon some hard times and were significantly low on cash.

How did you achieve this type of cash flow?

If so you need to fall into the guidelines (for the investor whos funding it) regarding non arms length transactions.The most common scenarios they typically prohibit are:- Gifts of Equity- Bailouts- Leaseback OptionsAt the end of the day it needs to be a legitimate transaction, with legitimate funds coming into close.

Its being operated at STR from last 30 months with great cash flow.

A grand negative cash flow is not the issue.