I have done 2 BRRRs its worth it but really needs to be on 4 units and maybe some 3 units so rents high enough to cover new payment, the cashflow will always be lower after a cash out refi but you should have no money in it so its an infinite return. 

You'll have to pivot to NonQM (non qualified mortgages) such as DSCR loans or bank statement loans. 

Not sure about CO, but we make tenants sign a NON-Refundable Holding Fee (not Deposit) Agreement for any monies received prior to move-in to HOLD the home for them.

Make sure as part of the agreement for cash for keys there is language on how he leaves the property.

It can be great, but it’s not for everyone.Pros:•Guaranteed rent payments – The biggest perk.

A guarantee is a promise but you CAN'T cash a promise!

Some lenders offer portfolio loans with lower down payments, but they often come with higher interest rates.

Quote from @Anshuman Thakur: Can someone please shed some light on how- convert 401k to SD IRA- how to use SDIRA to buy properties- how much down payment is typically required if we are using SDiRA to only fund downpayment on a multifamily CRE, and which banks typically work with SDIRAs- how does LLC structure- property management and cash flow work in this situation?

I’ll accept two payments.

Is this potential $700 cash flowing asset worth it?