Well, if you were putting together your true final gain & loss on a property, then everything tangible would go into the equation - tax benefits, principal pay-down, repairs & maintenance costs, etc.

For example, here I make 300K+ a year in appreciation in a normal year, and 30K cash flow and 36K principal pay down....on less than a half a dozen properties.

What I did hear was if you purchase your property in an LLC and you're the principal or sole member, that amount of time in the LLC is allowed to be counted toward the 6 months of seasoning before you can refinance. 

A multiple of 1.5 would mean that you put in $100,000 and get $150,000 back (total--that includes the return of your principal, so a $50,000 profit). 

This is because after 3 years you have paid very little of your principal down, even if you are on a 15-year note.Going from here, if you have strong W-2 income and don't need to close quick, there are a few lenders out there that will borrow on fix and flip properties but will require a hefty down payments in the range of 20%.

Equity accrued comes from principal pay down, so that can be a real figure, but it is not cash flow. 

You have rent increases built into the lease, principal pay down and tax advantages.

@James Robertson KP is Key Principal.

Note, a recast isn't a principal paydown which doesn't involve a re-amortization. 

Originally posted by @Mike Dymski:Good locationsCash flowAdd valuePrudent debtReserves good principals.. some markets were inventory is scarce there is still hot demand.