You are careful and you are adjusting.

For what most 10 yr rates are you can figure going adjustable 2 or three years after the fixed period and still be saving your overall interest paid over that time period.Maybe others will chime in if they know of a better way.

Does the 70% rule of wholesaling apply and I just don't adjust for rehab costs?

Typically I get 25 year loans with a 5 year adjust, right now I'm paying 5% interest.

They wouldn't entertain market increase in property value as a reason to adjust LTV. 

I have been thinking about this a lot lately as I have been adjusting to life in the "real world".

You can do a great job estimating everything today, you can estimate ever component down to the screw, but if you don't adjust your reserves and budget for the future value of the capex, it may hurt when the time comes!

If you're finding that you won't be able to get into what you want, you can then start looking into something with owner financing or perhaps adjust your plans accordingly.

You say "conventional" which by definition would be 20-30 year locked in, no adjustments.

Without inflation adjustments, and dividend reinvestment enabled, the annual S&P 500 return from 1995 to 2015 has been about 8.6%, so, in this very specific, simplistic, model, it seems to come out better.Naturally there's way more factors that play in - love to see folks poke holes in this and tell me where I went wrong, and what guesses/assumptions I missed calling out!