@Jake Johnston I think what @Jd Martin is eluding to is that with the construction (or maybe you are referring to a purchase/renovation loan) loan, the money for the repairs is held in an escrow account and you have to jump through a bunch a red tape just to get draws. 

Has anybody ever heard of a strategy along the lines of:1: Showing homes in need of repair to potential home buyers2: Have the potential homebuyers tell you what kind of renovations they would want in the house3: Get a contract between you and potential buyers for you to buy the house yourself, do the renovations and then sell the house to the buyers after all renovations are finished.Essentially instead of the homebuyer buying it and then worrying about doing all the renovations themselves after it has already been bought, they can pay somebody else to renovate it before they put money into it then buy it after it is finished.

The LLC Purchases homes, renovates them, then resells them. 

We would be able to raise rents to total about $2000/mo after renovations tho, we suspect.

A fellow investor told me the best way to get a quick estimate for Reno costs was to look at the 'Permit Value' of comparable renovations. 

Larger amount with a longer holding period then I’d lean conventional mortgage. 

@Jordan BowenProperty Management is critical, you won't get anywhere without decent management.I would add a larger buffer in your analysis.

I love the townhome style condos that were built so that each unit had its own character...one brick, next stucco with window shutters, next different brick with larger window, etc.

It needs $80k work done in renovations as the house has lots of mold issues and water deteriorated on the inside. so all in all it is going to come out to $250k.

It was a good learning experience for larger future transactions.