—In the case of a taxpayer other than a corporation, there shall be allowed as a deduction for any taxable year an amount equal to the sum of— ‘‘(1) the lesser of—    ‘‘(A) the combined qualified business income amount of the taxpayer, or   ‘‘(B) an amount equal to 20 percent of the excess (if any) of—       ‘‘(i) the taxable income of the taxpayer for the taxable year, over       ‘‘(ii) the sum of any net capital gain (as defined in section (h)), plus the aggregate amount of the qualified cooperative dividends, of the taxpayer for the taxable year, plus ‘‘(2) the lesser of—    ‘‘(A) 20 percent of the aggregate amount of the qualified cooperative dividends of the taxpayer for the taxable year, or    ‘(B) taxable income (reduced by the net capital gain (as so defined)) of the taxpayer for the taxable year.

All stated 'ridiculously excessive' when I told them the whole story. 

Today’s value is in excess of $1m and free cash flow is running $3k.With the Lakewood property I could easily see it valued at $1.3m in less than a year and free cash flow (after all expenses) of $2500+/mo.  

So, I know they have some excess cash at the moment and might be more flexible. 

Therefore, I am proceeding with the assumption that all of the HVAC systems are in excess of 12 years old and are at the end of their lives (~$35,000 for all units to replace).Also, I checked with an insurance broker and he said that the age of the roof and the fact that it predates the 2002 Florida building code will make insurance very expensive and that I should consider replacing the roof upon purchase--he was not even sure I could get a policy without a new roof.

Go in fat worst case.In reference to type of loan, I personally would rather keep as much cash liquid as possible.  

Jeremy I am not looking for a broker to encourage me to wholesale, I am simply looking for one that understands that this is one way that I have accumulated investment properties and excess revenue and to know that I will continue doing this ..

The CM approach is a great way to go, and with the clients I've worked with in this manner, I have netted them savings in excess of my fees - it's a win-win in my experience!

This opens him up to all of the rules that mortgage originators have to comply with, for example:Verification of incomeVerification of ability to repayAdditionally, any mortgage in violation of the ability to repay check, or any mortgage with "excessive fees or abusive terms" can be easily voided with no statute of limitations if/when you try to foreclose on property with said mortgage. 

@Rachel Trimble$190k X 75% = $142,500 potential cash-out and new loan amount, not $80k$142.5k - $110k (purchase + rehab) = $32.5k excess cash out remaining after recovering the original investment of $110k.