The red-light districts were a rational acknowledgement that there are certain behaviors that will never be eliminated in a democratic society, and rather than waste a lot of time and effort trying to eliminate them, corral them into one area that can at least be controlled.

@Davonta Williamsunlike all the other people here who are throwing around "facts", looking at the "reality" of being an agent and comparing the two to rationally look at the likelihood of your claim, I'll give you what you want. 

Property is in a B- area with rent to price ration close to 1.6 to 1.7.

All I need a solid rational for decline, that is valid from legal point of view. :)

Most rational folks would say no, and this isn’t anything different.

In addition, you get A LOT of tax write offs with real estate, including deducting the interest on the mortgages of the financed properties, so I would encourage you to work on rationalizing the idea that having a mortgage that returns positive cash-flow is actually a good thing.Every location is different, but we target $75,000 - $100,000 homes that rent for $1,000 a month.  

@Ernie Sturzinger not really understanding how you're rationalizing that you have no cash in the deal, yet the cash for the deal is coming from another investment?...

I guess I am asking is the loan based on an LTV ration after rehab.

@Dominick Galinis there is no rationalizing building when you can buy existing inventory...if you're not an architect or have a tight connection with a custom home builder this will take twice as long as you think with cost overruns you never predicted...how are you predicting you'll be in an instant equity position?

Capital gain is taxed at a 50% ration in Canada, so 100k is then added to my taxes for that year.