Hoping to have many more deals over the 10yr life of the draw period.

It’s nice to have some of that $20k sitting in your bank account for the overages or to ensure your payments can stay on track when you are getting draws.

If you subsequently rent the house for 3+ years, you lose that valuable exclusion.

that's an easy one.if everyone simply did what they said they would do starting with tenants.who say they will pay on time every time. wont sneak a pit bull in.. wont trash the house as they claim they are very neat.contractors for myriad of reasons.. bad work.. don't show up.. steal draw money , never finish work so poor it wont pass inspection. list goes on.realtors being one and having owned a few brokerages over the years its more in the realm of they don't know what they don't know or they are want to take on a mother hen protection of their client roll like an attorney would do.. and just are not out there to put willing buyer and willing seller together..  

@Vincent PlantWhen I've needed to draw out designs, I have always used Google Sketchup.

But lets say you get a great purchase, sky high LTV (let's ignore why you are also selling so cheap) and some nice HML such as ourselves will lend you 90% of cost plus 100% of rehab... say at a generous 10% interest only plus a mere 2 points.So at least a 10% downpayment plus $30k reno is a total loan size of $300k.You will need that cash on hand for the downpayment ($30k), for loan closing costs (2 points that's $6k plus loan fees plus Title plus Appraisal let's round to say $10k total), for funding till the first rehab milestone/draw ($5k?)

https://www.thetaxadviser.com/issues/2012/dec/clinic-story-06.htmlIn determining whether the income should be classified as ordinary income or capital gain, the court evaluated nine criteria: (1) the taxpayer’s purpose in acquiring the property; (2) the purpose for which the property was subsequently held; (3) the taxpayer’s everyday business and the relationship of the income from the property to the taxpayer’s total income; (4) the frequency, continuity, and substantiality of sales of property; (5) the extent of developing and improving the property to increase sales revenue; (6) the extent to which the taxpayer used advertising, promotion, or other activities to increase sales; (7) the use of a business office for the sale of property; (8) the character and degree of supervision or control the taxpayer exercised over any representative selling the property; and (9) the time and effort the taxpayer habitually devoted to sales of property.

If this is HELOC, you open it to the maximum possible amount at the minimum rate but only draw from it what you need and when you need it. 

It’s an easy read with stories that will draw you in.

They typically don't look at your income or tax returns but will often vary what they can lend you depending on your experience flipping/rehabbing and your credit score.Many HMLs will have a minimum loan size, say $75K or $150K.HMLs will also usually still require you to have skin in the game, funding perhaps 90% of purchase or 75% of As-Is value whichever is less, plus 100% of rehab in arrears draws.Besides the down-payments you you also need capital for closing costs, Appraisal, rehab (if any) till the first draw milestone and of course for servicing the loan at least until you have flipped or stabilized.