The After Repair Value is $180You borrow $120 at a high interest rate from somewhere, lets say a hard money lender, who charges a high interest rate on a short term loan.For simplification purposes, lets say the payment to your hard money guy is $1 a month and it takes you 5 months to complete.

I’d say, as others have already, education is key, but there’s no better education that to learn by doing.

I would say a credit score of least 600 to qualify? 

@Aaron K.That’s what I thought, so why does everyone say a follow up is so important??

I can't help but wonder, if you are going to have $400k on hand, wouldn't it make more sense or be safer to use it as a downpayment on say a 16 unit building?  

I don't think that a 12% cash-on-cash return deal would be particularly difficult in today's market, provided that you are focusing on rental returns and not, say, a speculative play in a high-appreciation, low-return market like San Fran, DC, or NY. 

And they always say a little more aggressive... ; )

@James Wise  I do want to say as well  that the FLA big time wholesalers that I was funding deals for their turn key operator.. they were all licensed .. and I know in MS if you get turned in your going to get in trouble..

The level of scrutiny varies by inspector.I would say as long as your contractor is legit and not cutting corners, I wouldn't worry about the city inspection. 

In the sense that if they occur frequently than financially it’s advantageous to have somebody that is cheaper than say a plumber