You would likely need to find Owner-occupiers to sell to, because Investors will always want to pay based on RETURNS, which normal leveraging (say a 75% loan) will not be providing them (or you), extrapolating from your figures!

@Theresa Harris You can’t just say a house “didn’t pass inspection” and walk away.

Let's say a HML is conservative (and they are) and puts the ARV at 230K.

Like are we talking 500 a month on say a 25K house??

So lets say a guy has around 400k in liquid assets and is looking at a goal of 10k+ passive cash flow per month, what is the path of least resistance to get there?

I guess cash flows differ with everyone, what would you say a good monthly rent on a 200,000 property would be Michaela?

I assume there is no real cash available, otherwise I'd say a bank loan with rehab money and have them do a VA to take out thier initial purcahse/construction loan, whic still might be possible at a small bank or credit union, and if you get a skilled contractor to knock out the work.Otherwise, take the FHA if you can find a lender to do them.

Let's say a budget of 30K.   

Say a 1/4 chance of each.

Plus in a refi you'll probably leave a significant amount of equity in the property which further hinders improving that return.You might be better off selling and doing a 1031 and using all $350K in cash to go buy several value add or cash flow opportunities using more leverage than you could with a refi.Or another option  that many of our skittish clients are using is to sell, 1031, and then use the $350K to purchase say a $200K property that will generate at least 7-8% net of all expenses  for cash and use the other $150K with maximum leverage to purchase an additional $500K of investment real estate which throws off a very superior return due to the leverage and sector.