Tax implications are also a consideration.

We've been in the Houston market for a little while now and we're seeing prices rising quickly and true flip deals becoming more scarce.  

However, I am concerned that with interest rates on the rise the banks may cancel our lines before I have the chance to find a worthwhile deal.

Just make your consideration on what the current market tells you what to do.

I'm visiting my dad for two weeks after four years apart, I intend to look into vacation rentals in his area for future investment considerations.

Which is also frustratign for myself finding good flips or rentals that I'm not dropping big money to land the 'deal"The market here reminds me a lot of when the foreclosures were on the rise and I was bidding with 10-20+ offers on properties in Atlanta, Ga.

When the foundation crew went to raise the foundation at the piers, he realized that the floors were rising up but the house was not.

I know I have considerably more coming in than going out, but I like precision because it gives you and accurate picture of where you are at any given time. 

You can mitigate this risk by either buying in a market that is not declining, or getting such a killer deal that you have a considerable margin of error / safety.

IRR allows you to compare deal to deal better because that return takes into consideration the time factor.Hope that helps.