Also, if the business is not profitable how does injecting cash work?

Therefore, it doesn't make sense to adjust the denominator unless you require an incremental equity injection in order to complete the capital improvement.The way I think through this is from a passive investor standpoint.  

Just like a business requires capital injections to stay afloat during critical phases, your real estate ventures can benefit from a well-thought-out infusion.

The seller financing must not exceed half of the required equity injection.

Do you also have capital for a cash injection on the loan? 

You need as little as 10% equity injection. 

This would be extremely difficult for hard money lenders as hard money lenders are asset based and they need borrower to have equity injection.

Our long term goal is to build a large portfolio of SFR, so it feels wrong to flip the first two deals we land, but injecting some capital is tempting as well.

Who doesn’t appreciate an injection of money into their city.  

It's meant to "bridge" the time from acquisition through renovation...then you can refi it into permanent financing, but a lender is going to want a sizable amount injected into the deal.Let me know how I can help.