@Brandon WongHello, I put together a spreadsheet model a while ago for calculating IRRs on rental investments, as an attempt to capture comparable returns by discounting future cash flows (in REI you also hear about cash-on-cash, which is typically at a point in time), and it sounded like you are having a related predicament.

They could be listing it as discount points instead, but if that's NOT the case, you should have a credit (not a cost) for a 7% rate I'd think. 

I do the standard buy and hold but the property has to be bought at a discount - 85% of ARV is my maximum - including purchase price and rehab.

Having  more flexible cancellation policies, having good reviews, offering discounts, updating listings periodically, not cancelling on people, etc

This is without paying discount points or buying down the rate. 

While prices have risen, there are still good opportunities for fix-and-flip projects if you can find properties at a discount or in need of renovations.That said, market conditions can shift quickly, and Tampa has become more competitive.

But those figures do include the onsite-manager, who basically just pays a discounted rent in exchange for doing the onsite-manager duties.

The market wasn’t as strong as it had been when we first agreed to terms, and he needed the discount to make it work.Now, I know my market.

The exemption is for tax purposes/discounts, not the legal definition of homestead. 

These things hold their value amazingly well.If I had to guess, if you bought it for 40k and only used 9 or 10 times, the hours on the machine would be so low you could probably resell it for 35k or better (given that their retail value would go up over three years so the discount from say 48k to 40k might even mean you break even)..