The property owners held the properties in their names, we rehabbed and made the house payments during our rehab time.  

Because I was thinking I could just get a conventional mortgage for the next property, fix it up for 2 months using the lines of credit or savings that I acquire, then refinance it when it values higher after the rehab.  

Hi Stephan,This seems to be a very popular and effective way to fund rehab deals.

So although they quoted me 90% of purchase/rehab, they only do 75% of those ARV, so I come out of pocket for the difference in those scenarios.          

It allows you to stage the rehabs while also increasing the rent and thus your NOI.

@joseph M. did mention to me the BRRRR method, Buy, Rent out, Rehab, Refinance, Repeat so that you can get your downpayment back out of the property to recycle on another property.

The area is newer, so a lot of Carpet. paint and some lesser rehab like a bathroom or a kitchen.  

. = $5510% MGT fee = $110Mortgage = $253, 20 year amortization @ 5% Taxes $116 per moInsurance $75 per mo total = $719 per mo2% rule = 2.20%Capex = 15%CoC = 33% (turn key, est rehab to be $1000-1500 - new appliances, needs a few new doors) , $2000 closing costs, $10,000 down payment) The duplex does only have 1 furnace and 1 water heaterMonthly cash flow = $381 Am I missing anything? 

For investors following the BRRRR method most of us are trying to balance keeping down rehab costs with the fact that we need a high value from an appraiser.  

I'm obligated to have the duplex as my primary resident for 12 months, although from my understanding the only way to verify that would be the mail continuing to be mailed to that address.