By using borrowed funds, investors preserve their own funds to keep sufficient Reserves on hand.

After looking in to a recent flip opportunity in Allendale, NJ I decided to confirm some comp pricing with my landlord.

We are all pretty much the same.The variances tend to be rates, down payment required, slight variances in our rations such as DCR, LTV, DTI, required reserves, expenses etc. 

I appreciate the questions pointers and they actually  confirmed my observations.  

I would say if the property passes inspection and their is positioned long time passive income I would go for it only if you had more cash reserves.

the property was acquired during or subsequent to the most recent tax filing year, the lender must confirm the purchase date using the HUD-1 Settlement Statement or other documentation.

If you have a second home with sufficient equity, it'd be pretty easy to get the loan IF you have the cash reserves (3 mos payments). 

At least it sounds viable financially, just need to confirm the legality.

I invest in tax deed properties in Ohio, which has a slightly unusual system in that if you 'win' a property at auction, you only have to pay a deposit on the day (usually around 10%), and the full amount is not due until the sale is confirmed by the court (ohio is a judicial state), which is usually a few weeks later.This is sort of like having a property 'under contract', when you would normally go off and try to get funding for the rehab / a buyer etc.

I will again confirm just to make sure I am not putting myself at risk.