Another way to calculate it would bemax price = ARV - rehab - all costs - desired profitAs stated above, you should end up with a total profit of the profit in the equation plus 30% of the ARV that's deducted up front.

If you had a high credit score (which they equate with being good with money), a large investment of your own, and a track record of similar projects, they would at least look at what you're asking.

I know people who have been investing for 25 years and have never looked at a survey, title commitment or closing documents, so don't equate time in an industry with knowledge or skill....it's often been more luck than skill that kept them from having the pants sued off them.  

These small, portfolio lenders can take rental income into the equation, before it's been income for 2 years, etc.That's what you need to find. 

Just to confirm: an 8.4% cap rate does NOT equate to an 8.4% rate of return on your investment. 

When we did raise the rent three months later by $60 (this unit was and still is below the rent we get for the neighboring duplex unit), this long term tenant immediately equated the rent raise to the recent repair and upgrade and how it wasn't fair since she didn't ask for the upgrades.

What improvements can you add to the equation?

Since I am dealing with houses in 60-80k range, this equates to about 20k +-.

As mentioned before a first month lease up fee equates to 8.3% so if you factor in a 10% vacancy cost you'll have it covered plus a few days.

An important key to your equation is how much money you have.