So if the house is worth 300k and you owe 200k then most you could pull out would be 40k (minus costs) and it would be a second mortgage most likely which would be expensive. 7.5-9.5% likely.But, you can put as little as 15% down for a conventional loan on a single family.

A few things to note-Loan payoff isn't part of the calculation of what taxable gain will be. 

I have multiple lenders that can do 100% financing for the short-term rehab loan, up to 70% ARV for 1-4 unit properties.

@James Calvert there is conventional financing that allows you to use renovations to make the property livable, just as you would with an FHA 203k loan.

The loan is non recourse, so I have no personal liability.  

I’m currently closing on my first property in 2 weeks using a FHA 203k loan to help with renovations. 

We can afford this, but getting a new loan at ~6.5%+ wouldn't be doable. 

Keeping a W2 for a while will make it possible to get loans and use leverage to invest.

Hard money loan How did you add value to the deal?

When flipping, the most important thing is understanding the available loan programs for potential buyers.