Colwell I was visited the area in March and it seems like there was new construction everywhere! 

I am assuming this is falling under some kind of guideline because you are using it as a group home. 

True...But there is usually some kind of smell in those...O dont know...

Ultimately, you will have to determine what kind of return is acceptable.

Only you can decide what kind of CoC is good, but I would recommend to have a combo approach for both CoC and cash flow.

This kind of activity becomes habitual very quickly.

Kyle Lewis thank you so much and to be honest I’m still heavily considering doing the cash out REFI for that very reason, but I’m kind of stuck in between a rock and a hard place seeing how both could potentially be the right decision.

One question: how confident are you in getting that kind of rent?

For other hacks there are all kinds of little things you can do.

You'd want the interest rate on the 2nd loan (Wrap Loan) to be higher than the interest you are paying the seller to ensure you are making some interest income via the spread of some kind.You can also ask for some kind of downpayment.