My plan is to buy the house subject to their existing mortgage, renovate the property, refinance it and pay off their remaining loan balance using the money from the cash out refinance.

.$70k out of my pocket cash and sell the house when it is done for $360k to $400Kclosing cost $40k so 360 - 40 = 320 - 270 = 50K profit or 400k - 40k = 360k - 270k = 90k profitthe $360k is conservative for sale price chino hill ca.at least that was what i had bouncing in my head

While offering the “cash flow tranche” of a SFR might not be viable, the cash flow tranche of a portfolio of say triple net leased properties may be much more viable.  

I looked at a few auctions  in the past, but they were cash only.Good luck!

Eventually whatever you will buy will cashflow and cash very nicely. 

We also have many unique buyer incentives where an investor can get up to a 10% price reduction to come into immediate equity, or get that 10% as a cash back at closing to reduce your down payment and increase your ROI, or buy rates down into the low 4s on 30yr loans to maximize cash flow.

I would just be cautious, as there are some rough neighborhoods in both Akron and Cleveland that seem attractive due to the cash flow but will be money pits after the vandalism and vacancy. 

I suggest 6 months of expenses to keep in cash.

Always smart to see the bigger picture and future cash flow potential!

From what you’ve described, it sounds like you’re more focused on long-term appreciation and future benefits rather than immediate cash flow.