A builder has carrying cost for land, material payments and labor expense - on top of that the building is not usable during construction.  

If you get the home free and have no or very low carrying costs, you should at the very least be in a 50% cash on and in some cases more like 100%.

Purchase price (inc closing): 130,000 75% loan = 97,500Renovation: 25k - update kitchen and add a dormer turning top floor into a proper bedroom (currently being used as one as it is)ARV: 190kPotential rent: 1650 - 1900 (friend has property on the same street that rents on the higher end of this range)Montly cost = 600 (capex, repair, tax, management/tenant placement, insurance, buffer)initial invest 25% down  + closing + construction = 32500 + 4000 + 25000 = 61500 + carrying costs until its rented (2 months)Refinance @ 70% based on 190 = 133,000 Money pulled out = 133,000 - 97,500 = 35,500; So would I essentially be leaving around < 30K (based on 61,500 + carrying costs) in the deal and the future returns are based on that number essentially?

While it is important to do your research on tk companies, I think many investors get carried away by trying to find that perfect company with a perfect track record.

Purchase price (inc closing): 130,000 75% loan = 97,500Renovation: 25k - update kitchen and add a dormer turning top floor into a proper bedroom (currently being used as one as it is)ARV: 190kPotential rent: 1650 - 1900 (friend has property on the same street that rents on the higher end of this range)Montly cost = 600 (capex, repair, tax, management/tenant placement, insurance, buffer)initial invest 25% down + closing + construction = 32500 + 4000 + 25000 = 61500 + carrying costs until its rented (2 months)Refinance @ 70% based on 190 = 133,000 Money pulled out = 133,000 - 97,500 = 35,500; So would I essentially be leaving around < 30K (based on 61,500 + carrying costs) in the deal and the future returns are based on that number essentially?

Can someone share their insight on the financials of carrying a note vs getting the big pay day now. 

@Damon James you will need funds to carry the loan.

For me it’s not worth saving $100 if I have to carry a stove up and down a flight of stairs and into my car.

There is obviously a cost to this in both fees to set up, fees to parties acting on your behalf, opportunity costs in not being able to take advantage of some deals or move fast enough, inability to obtain financing- even owner carry back would be difficult to accomplish, and general hassle.

People may write how dumb it would be to cash out a paid off asset to re-amortize another asset carrying a 4% loan.