I ran the numbers two ways: selling vs cash out refi back up to a 75% LTV.

- My first thought is offering cash, but the home owner would most likely just let it go to foreclosure because of how low the offer would be. - My second thought is offering some cash and taking over the loan - there are no liens on the property yet.

Purchase price: $105,000 Cash invested: $25,000 In 2016, I saw an ad on Craig's List for these 2 townhomes.

Also, if you focus on the fundamentals of the real estate, particularly with SFH's the cash flow is truly secondary to other benefits.

Sellers Get More MoneyWith wholesaling, sellers often need to take a low cash offer.

I would even suggest a Primary home or Vacation home to pull the cash out of versus trying to find a lender who will agree to be in 2nd lien position behind a investment property.

First, congratulations it sounds like your first deal is going well and is hitting your targets for cash flow, renovation timing, and hopefully budget. 

If your average heating bill is $150, you may not collect enough in the winter months when the bill reaches $225 but you'll collect extra in the summer when it drops to $65.

Sounds like a cash out refinance would be the best way to tap into that equity. 

Purchase price: $95,000 Cash invested: $30,000 Buy and Hold.