The banks have become pretty good over the last few years at extracting maximum value for themselves out of these situations.So assuming traditional sale, not much meat on the bone on this deal.

As the developer I want to extract the best value for the "highest and best use" of that parcel.I have what is called my "5 levels" of security.1.

My first thought was to get a loan on the property to extract the equity and the income from one of the two units would more than cover cost of Mortgage, taxes, insurance etc.The problems I'm running into is, A: The property is worth substantially more than I paid for it 9 months ago as I bought it as an uninhabitable bank owned foreclosure, which seems to throw up TONS of red flags with Mortgage Brokers / underwriters I'm told.B: I current have it listed for sale, even if I pull it from listing, the mortgage brokers want to again red flag itC: As my experience is Fix and Flip I don't have experience as a property Manager per se and the lenders I have spoken to all want you to have 2 years history. 

The point I'm extracting from the thread is to monitor how demand is impacted based on these increases.

Everyone has a different life and definition of happiness.Some would go through torture to extract another 3% out of a property annually and others are happy with XX percent and putting their life on cruise control with a higher quality asset.There are still deals out there but it is a lot of work.

In real estate there are a couple things rookie investors notice pretty quickly:- Paying cash is more attractive to the seller and tends to get the deal closed sooner (which could translate into a discount or winning when there are multiple bids)- Refinancing (pulling the money out) becomes more painful if paying cash, many banks don't offer delayed financing (https://www.fanniemae.com/content/guide/selling/b2...) and those that do require more hoops to jump through, require 70% loan instead of 80% and don't allow you to extract repair costsI've actually been bitten by this refinancing issue with my first purchase in Chicago.This really hurts rookie investor's ability to start acquiring properties because we don't yet have good connections with hard money lenders/portfolio lenders, enough extra cash of our own to buy multiple properties outright, or enough properties purchased to stagger refinancing such that this doesn't affect us.

As in any opportunistic or value add opportunity, the investor extracts value when they make the effort others won't or don't, and are willing to put up capital up to the point when it starts to become uncomfortable.If you like the possibility of owning this property then I would suggest you spend whatever my minimal amounts are required to get comfortable before the auction, not full due diligence just enough to answer any nagging questions, and then make your initial offer.If the bidding starts to run up from multiple buyers then move to your next comfortable price.

So seems like the First millionaire training by Josh n Cody is a collapsed version with extracts from Fast track.  

They say you can get 46% ROI by buying cash then using a equity loan to extract all your money you invested in the property. 

Your return will become infinite if you can extract money in deal.