The in-place rents for the cash outlay are pretty low, but that's all relative...the repairs seem excessive...assuming an ARV of $650k and cash out at 70% LTV lands all of your cash back in hand if you do not do the reno...use delayed financing. $525k all in with ARV of $650k changes things quite a bit...you can't pull all your cash back out, but getting $350k back may work...What is your possible appraised value as-is? 

Also if the lender goes under and pulls funding will I be able to get the funds to finish. 

@Allen MarisGood point; I’ve heard CA takes your income taxes before you even get the funds.

I find the stories interesting as I try and see how I could use their experience and lessons learned to my benefit.My latest read is Ray Dalio's book who is the founder of Bridgewater (Very - Very successful Hedge Fund - That I frankly never heard of - Shocking but True)In the book Ray does a great job of breaking down is career, struggles and lessons learned in the first half and then spends time on the "Principles" he wants to share. 

While there are plenty of hard money lenders to fund the purchase and rehab, I am not finding many lenders who will refi in the $40k-$60k ARV range.

However, I'm currently in a back-and-forth escalating disagreement with my bank that claims I need to reach an LTV of 65% to remove MI versus what I believe the home possible guidelines show on their website, which is 80% for 1-4 unit properties.As you further dive into this process please make sure to have your bank document the conditions for cancelling MI.

AND would you consider using another funding source or strategy besides tradition bank?

All,As you can probably guess, I am looking to close my first investment, but don't have proof of funds nor liquidity to put down an earnest money payment.

Needless to say, I need to get creative with our next property whether it be private funds, taking on a partner, etc.   

Was able to negotiate a master lease for the property and take over management prior to purchase in order to generate some of the funds needed for the down payment.