Totally understood, that was the answer I was looking for.

this brings up something i was thinking about. i will be looking for properties where i pay cash for purchase and rehab, with this total amount being 70% of ARV(or less). then, with a partner, who finds the deal, buying me out(whether with new loan or ?)

you have to have an accurate rehab estimate, and the total (purchase+ rehab+ holding/marketing) has to be figured relative to a reasonable sales price.

I live in a small town, although we have TWO granite quarries and about 25 installers (total "metro area-4 towns in 2 counties is less than 25K people) and cheap labor, central TX and it's still going to run about $55-$60 sq ft, including edge beveliing, around here.

The insurance is also totally different.

Or must I buy an totally new property with the proceeds around that same time?

basically what i'm saying is just be totally honest - you're not contracting these properties with any intention of actually closing on them yourself.

It depends where you are located, but there is a hard money loan program that will; here are the details:100 LTC (between 65-75 ACV)10.99%~11.99%4-5 PointsSpec or Owner/Builder Allowed6-18 month maturity (extendable to 5 years)Interest Only PaymentsRepayment is based upon disbursed funds not total loan amountNot FICO Driven (equity driven)No Reserves RequiredIndividuals, Corps.

The prices may be quite a bit lower, so ask yourself why--one reason is that the dues, fees, fines, and assessments can/will be increased/added sometimes for reasons with which you totally disaagree, that might be harmful to your unit, and that you have no choice but to comply with.

So I collect $5k + $1700 first month rent up front, for a total of $6700.