If you borrow 100% of the purchase and rehab costs your ROI will be infinite and it doesn't matter if your profit is $100 or $100k.

I do have an umbrella policy to cover all my assets but that has nothing to do with what replacement cost is to having full coverage on a property.ThanksDaria

https://www.zillow.com/homedetails/114-S-Broadway-St-Toledo-... seller has 'described' it as follows:"The property features a new roof and updated electrical work completed two years ago at a cost of $120,000.

Its a great way to blend investing and saving on cost of living in a pricey market. 

This is just the normal operating costs, never mind the big things that come up occasionally with capex like when you have to replace a major component (furnace, water heater, sewer line, driveway, steps, deck, windows, roof, doors, siding, landscaping, etc,) and it costs $10-20k.

I used the values from the realtor.com website for purchase information and expenses, and the bank of america calculator to estimate closing costs.

There’s not much time to hunt for a better loan, and this option helps you save cash and increase your buying power.

Lend to experienced individuals who own other rental properties already6. 6/mo Payment Reserves: insure the borrower isn't broke and has the ability to repay your debt. 7. 100% Hazzard Insurance: make sure the borrower secures hazard insurance that at minimum covers your Loan Amount ie "replacement cost".

Most investors in our network fund the purchase and rehab with a hard money bridge loan (10-15% down on the purchase and 100% reimbursement on rehab costs).

Fire rating exterior walls on structures like these would be another expensive requirement that would continue to drive up the cost housing which is the last thing we need.Here's the code section I found Exception #2