Below would be my 2 suggestions for whichever route you took:Rehab:-Use HML to BRRRR a distressed single or small multi family deal and refinance after 6 months ( I have a HML who will lend 90% of purchase price and 100% of the rehab as long as you can prove you have done one deal - message me if this interests you).   

For me personally, I look for a minimum absolute return on my flips -- either $15K or 15% of the sales price, whichever is higher.That said, I generally assume that a flip won't take more than 4-5 months, so even in the worst case scenario (a 15% return on a deal where I pay all cash that takes 5 months), my annualized return is going to be around 40%.Now, generally, my annualized return is much higher (usually in the 200-300% range), because:1.

Melt some of that ice away so we can see the world better when we look around from Alaska.We almost can't see Russia because of you.8 and finally, whichever Canadians do not agree with my 1-7 points must be less intelligent, uneducated compared to the average Canadian.

But, are you talking about a purchase loan, or a refi, and are you sure it's 70% of ARV, or 70% of purchase price/current appraisal....which ever is lower?

If so, then he is bound to the lease.As "mitigated damages" for not moving in, I would refund the rent but keep the security deposit (whichever is smallest).

We provide services for 10% or $50 a unit, whichever is more.

So when evaluating a property in Texas, always, always use either the purchase price or current valuation, which ever is higher,  and multiply that value by the collective property tax rate to calculate your property tax carrying cost.I'm doing great in Texas, you just have to buy good deals and appeal your taxes every. single. year. 

For the average person who does a handful of small projects max a year, go to whichever one has the things you want on sale.

From what I understand, you put all of your rehab costs on the HUD-1 at your first closing and you can either get 75% LTV on the appraised value (ARV), or 100% of the purchase price (plus rehab costs), whichever is less.  

As far as depreciation recapture is concerned, you are taxed on the depreciation you took (or should have taken, whichever is higher) for the rental units.