I am a Senior Property Preservation Specialist just getting back into Flipping Properties.

In the case of a fireplace I would always look toward future sales of the property and preserve it in case a future buyer wanted a fireplace but I have and do have my carpenter permanently block it off with a heavy duty wood piece, usually 1/2” plywood that we then paint to match the room.

@Naomi Moore The most fatal mistakes are what you missed, and that is the framework of making the best roi SAFELY, preserving your $4m capital.

It preserves your relationship with the seller and keeps you from being the bearer of bad news.

Maybe a lower down payment will not impact your payment dramatically but will help you preserve funding for the next project.

While I know that FHA loans can indeed provide opportunities to applicants with lower credit scores, his remarks are counter to what I have come across in my research regarding real estate investing- and that is, to get into a deal with as little cash outlay as possible, in order to preserve cash for the next investment.

(3) if we were to pull the trigger on this, we would likely want to do a Section 121 to preserve our equity gains, as much as possible, and pour it back towards the downpayment of the multi-family.

Being liquid does affect the overall return on the funds; however, the purpose while it is being held is to preserve the capital for a larger investment.

By doing this, not only are we completing better transactions with the public and improving our image, but we are helping to preserve our investor friendly atmosphere. 

@Adrienne Binder, your priorities should be capital preservation first, returns second.