Here are some reasons you need hard/private money - even for flipping. 1) So that you can do more than one deal at a time if you need to.2) So that you can close on houses that need a significant amount of rehab - as most banks won't finance those at all.3) So that for houses that you are putting down 25% plus rehab out of pocket, you are able to keep enough in reserves to cover any repair contingencies.Your assumption above in terms of doing one flip per month is interesting and I guess based on your available capital.

Customers aside, there are a couple avenues I would personally explore in your situation.First off, let's assume you have good credit (750 or better - I know this can be a wild assumption), get financing at 4.5% amortized over 30 years, and the bank uses next year's tax rates (taxes in Philly are inconsequential right now but AVI will come into effect next year and taxes will be jumping up - we'll use 1%).

Hopefully you'd be able to raise rents as well in that kind of inflationary environment, but it's best to not make that assumption, as economic conditions may be much worse as well, leading to higher unemployment, household consolidations, and pressure on Section 8 subsidies.The low fees look very appealing.

My assumption is that your business consumes a lot of your time.

Insulation is always good idea. for that and the cieling and walls and hvac - you are upto about $40k..with lots of assumptions...bathroom remodels another $10k each...kitchen 8 x 10 - sounds like you are ok with economy materials so maybe $30k?

He is currently on a month to month verbal agreement.Purchase Price: $40,000Expenses on repairs & cosmetics: 3K to 4K (Estimate by Agent) Financing Assumptions: Down Payment: $8,000 Apprx. mortgage Payment: $168 @30yr Term Rents for each unit: These are fairly conservative numbers. 1st Story- $600 (Vacant) 2nd Story- $400 ($275 now) Property tax, Insurance, and Water : $350/monthManagement Fee: $100/month (10% gross rent) Vacancy: 8.3% estimated Individually metered?

Assuming that higher end rentals will mean tenants take better care of the place, may not be a valid assumption.

Steve Might I think you made several assumptions that are not correct.

A good way to recalibrate your assumptions is go look at the properties you did make offers on and see where they sold at.

I know it sounds great as a landlord to dump costs on tenants but DO NOT make the assumption you will; be successful with that and talk yourself into buying a property that way.When investors say 1.