If you are seeking a HML, you must present a solid deal to a borrower so they have the confidence to make the loan believing that you will perform.   

We've updated 13 identical units over the past 2 years, and know with confidence that renovations and new appliances run around $3500 - $4,000 to get them to the point where we're proud to rent them and they rent quickly. 

@Dave Foster Good info here.

@Dave Foster - Well luckily I did understand the most basic rule and purchased the replacement property at more or less the same price as the relinquished property.  

My confidence is strong, but my lacking in experience is holding me back.

My confidence is strong, but my lacking in experience is holding me back.

@Amaf J.Assuming numbers are correct, and assuming 30% tax, thats about 6k CF on about 10k down. 60% sounds like an excellent deal.I guess the main question is how confident are you of those numbers?

@Dave Foster?

Both had previously fallen out of contract due to meaningful foundation issues, so I had a high degree of confidence that I could negotiate pricing down based on estimates from contractors.

I feel confident that I can find good deals and know them when I see them for flips as I made 150k on this one.