Too bad you can't buy something owner-occupied, put 5% down with the best interest rate, live in it for 12 months (and fix it up), rent it out and repeat the cycle.Here's some other info you might find useful:----------------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I am looking to work on fix and flips in the city of Philadelphia.

Personally, If I could pull out a HELOC, I would use it to fix and flip which will typically make sense as you shouldnt be keeping the money out for that long and you can recycle it or pay it back and build off the capital that you got from. the flip.

Then I put about $45,000 in fixing it up and I expect the appraisal to come back within the next couple of days at $240,000 or higher. 

Welcome to BP, I’m an agent here in the Phoenix/Scottsdale area and I work with a lot of investors on fix-and-flip projects, rental properties, and off-market deals.

OK, so how do you plan to fund these fix/flips?

You can look into the fix and flip route.

Detroit has tons of distressed properties, and the city is actually offering incentives for investors to come in and fix them up.

As for ARV, you’ll want to look at recent sales of similar homes after they’ve been fixed up.

I use the fix and flip tab and it's great it tells me my allowable offer and all the tools are helpful!