Typically, you just need more skin in the game when starting off, so, 20-30% for first time or newer investors, rates (9-12%+) and fees (2-5 points plus closing costs) will typically be higher as well and after you get a few completed and have the resume, you can start getting better rates and terms. 

The numbers are only going to get you so far.The numbers won't tell you if your GC is going to flake out and disappear three weeks into this rehab, if this dubious person hired a trim carpenter who doesn't know how to cope inside corners, if your flooring guy's going to assure you that of course there's no problem with having vinyl flooring in the kitchen of a home that you intend to sell for over half a million dollars, if you have plans on replacing those Lowes bargain bin flushlights in the kitchen and hall with something else, if your drywall guy will eventually tell you that, sorry, he knows nothing about plaster repair in structures dating from the 1920s, if that ceiling in the living room is popcorn, painted popcorn, asbestos-laden old painted popcorn, or just a knockdown texture finish, why there is a washing machine in the kitchen, and the hits just keep on comin'...Get in the weeds of the rehab analysis, Alon.

I like hearing the stories of those folks that were able to build a RE business and retire early for their financial independence and several of them did it in different ways.Thanks for your post, I think it’s an important discussion.Thanks for your comment Michael,There are many ways to skin a cat as they say lolI never claim to be right or wrong.I like starting a conversation and sharing my opinionMuch success

I end up having less cash flow since its only 5% down, but I just wanted to get started and have some skin in the game

Is there enough skin in the game to trust an agent on finding off-market deals and/or speaking the RE game to a prospective seller or listing agent? 

I also offered her a free (except cleaning fee) stay during our very slow season - no skin off my back there. 

There more ways that one to skin a cat

BP is a bit of a “tough love” type community but it is a good one, you just have to curate the advice and embrace the skin-thickening which you’ll need in this biz.

So I require skin in the game (average is 5% to 15%) to offset this.

The stories I hear of people investing with no money down are usually people who have tons of knowledge and skill in REI and that's why people will fund their deals without them having skin in the deal.