If you are really comfortable with the deal flow, the best way would obviously be to keep flipping / scaling up while gaining equity each time but its a lot harder as you never really know when the next deal may come. 

The problem is that we need to be careful with the word "passive" because it has a very specific meaning in the tax law, and it is not intuitive.For example, losses from rental properties are usually passive but not always, there are some exceptions.

Terms are not going to be super aggressive due to the fact that the rehab amount is larger than the purchase price though.

Do your research and you'll be fine.

I would not consider a house that cheap to be near a B.  

Be super careful, @Tyler Dunkel.

I have a meeting in Queens during that time so I won't be there but if you stop by 12-2pm, my colleague will give you the details on the deal.It would be great to connect at the expo but I'd be happy to chat or meet up sooner. 

Networking will be key here.

For this reason, it would be prudent to not overleverage yourself in this type of environment in order to wait and see where rates do end up falling, as there is consensus in the market we are moving into a falling rate environment, the exact timing of when rates will be falling is unknown and different scenario analysis should be added to underwriting refinance periods to be sure the project is sustainable if inflation resurges and a refinance is delayed.

Correctly it should be called the STE calculator.