Good morning BP community,I'm a returning REI in East Tennessee who is now investing and buidling a family business full time after a career in the military.

I run a full-time planning practice focused on real estate investors, so I wanted to add a few thoughts for context:1.Cash Value Takes TimeMany IULs (Index Universal Life policies) may take 7–10 years before you can borrow a meaningful amount of cash value.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

For example we usually budget about $2,500 for kitchen appliances including dishwasher, because we rent to families and a full-size french door fridge alone will be $1200-$1400.And we usually have two bathrooms, and they take a lot of material and labor. 

It stays full on weekends but we're missing weekday rentals, especially in non-peak season.

@Chris Magistrado, I am going to echo Rick: without checking the math, it seems close to accurate, in the theoretical sense that A*B=C.Take what I have to say with a grain of salt because I am not a "full-time" flipper. 

It would depend the full situation, but I'd pursue the equity line before I touched my first at 3.625%. 

For instance, and in brief only using one concept (not meant to be the full list of criteria), a rural property has a population restrictions and proximity to Metropolitan Service Areas ("MSA" - think big city area) as some restrictions.

I just rented to someone with a prior eviction on their record Their story lines up with the paperwork I have available (it was more of a dispute with an HOA nosey Nancy, and their former roommate, than a tenant violation of terms - settled on agreement instead of a full eviction, and the problem roommate is no longer in the picture).

I would love to find something that is has value add potential but not looking to full rehab.