I feel like this is incorrect.

Somehow he had a price that was $5K less than the contract price (and I still have no idea where the incorrect price came from).

I'll just add that those that do this would typically set aside some of the amount borrowed to make the minuimum payments on the CC's (in response to someone previously).Also, if you can demonstrate that the CC debt was used to acquire the property, the interest should be tax deductible (Dave T can comment on this, I've never heard him say anything incorrect about taxes).Obviously, it's a 180 degree different financial world than 4 years, ago, exponentially more difficult to get financing, particularly NOO HELOC's.If you can hold for 6 mths to one year, however, you might well be able to use a new appraisal, picking up the appreciation you forced into the deal, in your refinancing and do this with little or no net funds invested when the dust settles.So if the stars all align... jackpot.

Maybe I'm reading such incorrectly but your confusion seems mildly ill-placed and off-putting considering, you're simply in disagreement with someone you don't know, who wasn't necessarily speaking to you or your personal situation.Again, I appreciate what you were intending to do but the answer to your question or response may be a simple as you may or may not do the volume, have the scope or focus regarding scale of investment needed to be that individual to which I'm speaking of.

@Pamela Holmes Some of the responses here are incorrect or outdated-There is no holding period for Investor purchases of HUD homes and they can be resold at any point . 

I phrased the question incorrectly.

Your formula is incorrect.

We've also had tenants hook up their washer drain hose incorrectly and cause significant water damage.

I would review the comparable and if you see something grossly incorrect, you can challenge the appraiser.

I think I'm just networking incorrectly.