After the last crash, Private Equity companies were doing this with a flawed model so they saw great losses, these companies are trying to use a more refined model however I still see gaps, the big upside is if you gave people the option of using a well known brand like Redfin or using the stranger who direct mailed or cold called you, Redfin will win most of the time over for those who are on the fence or uncomfortable with the situation.

Since I only had an agent for the first transaction, she stepped in and coordinated everything for the refinance.

And of course there will be PMI.If keeping that 5% in your pocket will allow you to fix the property up and achieve 25% equity, positioning you for an advantageous refinance, or if that 5% will let you fix it up so the bumped rent is greater than the bumped P&I payment (eg, 15% down costs $150/mo more, but the new kitchen it allowed you to put in lets you bump rent $250/mo), those are basically the top 2 times that 15% down makes sense. 

I am financing the down payment, closing costs, and rehab through a private lender on a $20,000 loan at 9%.Purchase Price: 85,000 (5,000 down, and 6% interest only payments to seller for 6 months until refinance)Rehab: 7,000 contracted out to my GCARV: 145,000Rent: 1,550 per monthDuring the first 6 months I will cash flow ~$275:Vacancy (5%) - 77.50CapEx (5%) - 77.50Repairs (5%) - 77.50Garbage - 50Interest Payments to Seller - 425Interest Payments to Private Lender - 150Insurance - 80Taxes - 333After a 6 month seasoning period, I will refinance for 105,000, again ARV is 145,000, so 72% of the ARV (I can refinance up to 80%, leaving me some wiggle room if needed).

If you already have a separate fuse box and wiring your best bet is probably to shell out for the new meter.

Once it’s fixed up you can refinance it off of the projected ARV.

Suggestion: cash out refinance and use the money to buy rentals (eventually, mortgage free ones) in an LLC (or Series-LLC).

Private money is usually good if you are going to exit in a short period of time (flip, quick refinance, capex, ...etc).

And then use the refinance to pay off the hard money loan.Any feedback is greatly appreciated.

You always have the ability to pull cash from that property by way of refinance.