It is an 18 unit building in a very fast growing neighborhood and just by doing simple due diligence(50% rule, cap rate ratio) it should be pretty profitable.

@Jonathan Taylor generally this can resolve by giving lender audited profit & loss worksheet for current year.

No CapEx) Monthly profit: $70.46 (so basically nothing)Cash on Cash ROI: 0.79% (ouch)Cap rate: 8%As you can see, the numbers are grim...My options as I see them are as follows:1) HELOC to gain access to this equity.

I feel it will be tricky to find financing that early but hopefully I build proper connections and create a game plan that investors will feel confident with the deals I will successfully make profitable. 

Then hopefully you can still add in a profit.

Then when we sell, get back my renovation cost and split the profit with the seller.This would cut down on my cost of money and turn a reluctant seller into an enthusiastic JV partner.Good idea?

If there's a profit in the end my taxable income will be reduced thus offsetting the tax I paid in earlier years, so, I think it does 'zero' out.I don't think anybody truly understands how this all should be done, probably not even the IRS. 

I made some profits.

What I am looking to accomplish with you guys is to build lifelong profitable partnerships through single family/Multi-family wholesale and flip projects.

Is the potential profit better since the loan is less with borrowing on a lower purchase + rehab?