I had to refinance/cashout to pay off the HELOC because the lender would not allow that debt/lien on our home which was fine because it was a variable rate HELOC so there is risk that the rate would go up over time as we are witnessing now.

@V.G Jasonyes - the variable in a lot of these posts is often the poster, and not the deal.should a brand new investor with $0 buy a random house in Ohio that needs $37K of cleverly hidden Capex because it will "cash flow" $117 a month if that Capex is ignored? 

This will be subordinate to the existing FHA loan, but you’ll need to qualify based on your credit score, income, and debt-to-income ratio.Home Equity Line of Credit (HELOC): A HELOC could also be an option, offering flexibility in how you draw and repay funds, though it might come with variable interest rates.Balloon Payment Loan: This type of loan can offer lower initial payments with a large lump sum due at the end of the term.

Sometimes investors will pay up to 80% of ARV, depending on other variables and prop location, but many times they won't. 

@Brian BurkeI bet none of the investors asked the question of “what does the capital stack look like on this deal”Probably was variable rate debt as well…

HELOC are best for short term due to variable rates.

Closing costs are variable but about 2-3% of loan amount.

To many variables to make information useful.

If you were paying 25%, and you got actual costs down to 10%, with your own labor as free, and no insurance.....when you add in the cost of your own labor, insurance, then add in profit, and increased costs as you grow in a variable priced model....you're going to be right at the same price of the competitor you fired. 

The reason mine was challenging is we deal with non performing loans, which have a significant number of variables from foreclosure timelines per state, foreclosure costs including recoverable and non recoverable, issues with if property has equity or no equity, what-ifs the borrower files BK etc. which also needs to be modeled.