So, Jason, what did you decide to do, and what was the result.

It’s not just the cash received at closing, you have to consider the mortgaged portion of the relinquished property. 

I do the same tropes of things in the Tampa Florida market.  

The flipper pays 12.5% interest to the lender, and I receive 10% of that.

They are uncontestedly (is that a word)  giving up the home and there by forfeting on the payments.

They've even called my mom who we don't live with anymore (but lived with at the time we applied for the loan).

The problem is the over saturation of them.  

My question is how can someone be so far off on value and continue to keep their job? 

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Steve,Welcome to the BP forum and great time to get back into the REI world.