With that said I might as well ask the first thing that's been eating at me since I found this discussion.

I knew nothing about bagels and nothing about hot dogs... got out of it but I was was eating bagel dogs for quite sometime. :)@Kenisha Forbes  as others have explained the Note business as it exist today is quite complex.. and for anyone doing anything with Owner Occ notes or originations its doubly so..

This also means if you find a cheaper flip and do not use all of that money you will still be paying this off and could eat away all of your profit.Maybe if you already had the property lined up and the numbers were all there but this is a much riskier option than a HELOC.

If the sale is not closed does the bank eat the appraisal cost or do they send me a bill?  

Isn't it a lot of expenses that eats up a lot of your profit?

RE taxes could easily eat into your cashflow.

So basically I am going to have to eat the tax burden which is ok as my net profit for my first flip should be around 50k.

If these are buy and hold, the fact that you created a bunch of equity with your rehab means nothing - you can't eat equity as they say. 

Closing costs will eat up profits and you are adding interest rate risk.  

Keep in mind 6% in agent fees is going to eat up 11k.