In the right situation you can come in with minimal out of pocket.

Here is the situation.

@Dave Saveri  I had a similar situation to yours in the past and used a 401k loan for the downpayment, and then at closing the seller essentially reimbursed me (seller financed 2nd mortgage).  

Real estate investing 101.Hard money lenders usually lend 65-75% of the project cost, charge 12-14% and 2 points for origination. 12% fees is a huge red flag, the only you'll get from "Midwest Corporate Credit" is an ulcer from the stress of losing $7,200.Raising $60,000 isn't too difficult, if you talk with friends and family and maybe a real estate attorney or two you should be able to raise it.

Everyone is different in this situation based on what they have going on in their life.The vacancies on a single family are hard because it will drop your income to 0 for the period it sits.

I historically rented to young adults / early 20s, but I've always had a hard time because so much fluctuates with that demographic at that point in their life - people move in and out and it's stressful for those tenants who want to stay.

The old carpet will be thrown away for sure and I don't think it will be worth keeping the blinds.If the only risk left is that the tenant leaves with the carpet and the blinds, I am OK with that.But if the fact that the tenant "upgrades" the house at her cost can lead to legal issues down the road then I am not so OK with it (situation going sour for some reason).

As a contractor I always prefer a full gut but it does eat away the rehab cost and takes longer but no stress about plumbing, leaks, electric, lead paint and etc in the future.The patch up would cost less, fast timing, but then you are gambling with what's behind the wall and hoping nothing happens in the future.I assume most house that are purchase for BRRRR purpose are in distress/bad condition and old on some occasion.What rehab number would you go for?

(in this situation, does he pay his bills)You must plan for the worse in the sense that this IS a business and should be treated as such.

I would like to hear what everybody uses in this situation?