I've heard all the no-no's, but people I know are telling me "just consider it rent expense" etc.Would you mind digressing on your investing model?

Hi Brian,I might be able to help with modeling.

Remember, there are many business models.

Business models differ per lender.

Trust your instincts as the tie breaker and use conservative modeling assumptions for the raw numbers.

I will go ahead and bare my own strategy:This is assuming the purchase price of the home is between $80k-150k...If the rehab takes 1-2 weeks we look for a $20k+If the rehab takes 2-4 weeks we look for a $30k+If the rehab takes 4 weeks+ we look for a $40k+I know this is probably a very strange strategy, but it works well for our business model.

If it's not worth jumping through the hoops to apply the KISS model for you I get that.  

Allowable Repairs or Renovations Funds can be used for any repairs or renovations that are permanently affixed and add value to the property.Allowable repairs or renovations include, but are not limited to: Installation of an “in-ground” swimming pool Outdoor living areas are also eligible along with the pool installationSubject property cannot be an unfinished model home or unfinished new construction.Kitchen appliances (i.e. cooktop/ovens/stove/refrigerator/dishwasher) may be included only as built-in fixtures (attached to property - cannot be removed) in connection with a total kitchen renovation that includes new cabinetry and countertops.

We still have a $250.00 Sony display model that we bought 6 or 7 years ago from Sears and can't seem to justify replacing.

Thought I might be missing something...would rather get some feedback on my business model than jump right in and sink !!