For a traditional Heloc at most small banks/CU's, the rate will be variable and will be WSJ Prime + a spread that represents the borrower's credit risk.

I also like to use incidental insurance as an additional layer such as Waivo to cover items.

They keep any profits above 12% and it appears they charge about a 2% fee plus a couple other nonsense items (based on my very brief skimming through some info). 

The "slow flip" I am referring to was purchase the property in the traditional financing way and then live there while rehabbing and improving (adding bedrooms, getting the yards back in shape, updating finishes, building or adding shop space, etc.).

We typically estimate standard costs for these items but get them done much cheaper with our own crew.

Originally posted by @Michele Davidson:@Alex YeaterWe are selling our bed and breakfast business complete and turn key with wedding items.

For traditional loans that rely on personal income and DTI (Conv, govt), there is no requirement that the properties be profitable.

This could make sense if you do't qualify traditionally, AND you plan on refinancing again within a year or so. 

Because they aren't traditional tenants in the sense with a 1 year lease and to determine fit for the house, I like to start everyone on 2-4 month leases and see how they perform.

For months, this was what we were following but of course when dealing with me I never make people wait so long and I pay as soon as I am able, as soon as the line item funds drop I usually send a wire or zell payment.