That's a very real concern (definitely one I had when I was starting out).

If your concern is positive cash flow, you are typically less concerned about when you pay off your debt because the goal is the positive cash flow.

That is the portion of the deal I'm concerned about or better put unfamiliar. 

But, after having taken care of that immediate concern, it'd be even greater to then be able to get a regular 80% LTV cash out refi (after whatever seasoning time is required) on the very same property, because that would allow them to include the equity they've added, whereas that added equity (added via performing the rehab) is apparently not able to be included in the Delayed Financing's LTV.

I understand your perspective, and can appreciate your position as a Buyer with these types of concerns. 

@Chris Mason   I think it was an attempt to prevent illegal bundling of certain services but I agree it might have caused more problems than it solved.

Originally posted by @Laurie Verdecchio:I'm worried about damage to foundation.We buy quite a few with water in the basement. 8 inches of water does not typically cause foundation issues. 

@Waylen Herdman What is your concern with obtaining a mortgage?

Both have basically the same rules as the IRS is concerned.

In this case I have $145k into the property and appraisal will be around $175k (not my best BRRRR but what do you do)I've printed them the deal analysis using the BRRRR calculator here on BP (you know, the nice pdf and all), I've provided them market comps that support my cause...nothing seems to work.