@James TebelmanIt's pretty hard to beat an instant 25% ROI plus the tax benefits you get with a 401k.  

People speculate that we're "in a bubble" right now, just watch and see what will instantly happen if this comes back.

This is a guess on my part:  since the bank knew that the home was going to have instant equity, they ordered the cost appraisl to make sure adequate insurance was purchased.Also agree with everyone on this thread that if something doesn't shake loose or new info come to the table, then it's better to walk away.

I'd rather buy a place, maybe out of state that cash flows, under market, to have instant equity and ensure I come out ahead each month and not have to worry what the market does. 

For example, if it is a simple lipstick rehab, and the exit value was a no brainer to get instantly, I can see paying as much as 79% so long as you are in and out in 100 days or less.Bottom line, these rules of thumb are not silver bullets, you need to know how to adjust them according to the specific circumstances.

With my increased knowledge I felt more sure of myself and was able to help my clients a lot more.I didn’t stop reading either:-Buy it, Fix it, Sell, for a Profit –Kevin Myers-Flipping Confidential – Kirsten Kemp-Getting To Yes- Fisher, Ury and Patton-Flipping Properties: Generate Instant Cash- William BronchickMy first year as an agent was hard.

Single family must cashflow $200, multi must be $100/door Single family properties I would like to be able to create instant equity with properties that need some repairs, or something I can take from a 2br 1ba to say a 3br 1ba. 

Best to always buy properties that give you instant equity gains after repairs. 

That appears to give you $25,000 instant equity.Let's say you refi in 3 years.

It instantly has an appeal and a way to generate income.