I'd also be careful when using a heloc for the down payment and getting a loan on top of it due to the zero equity situation -Be safe!!

Purchase price: $137,500 ($44,000 in to the property... loan at $101,000)Appraisal: $180,000   ARV: $195,000Est rehab cost: $7,500Scenario #1: 75% LTV cash out refi at 4.25%...

A $300,000 hard money loan will cost you about $100/day to carry. 

If it provides a nice return on investment and you plan to hold it for a long while, then it makes sense.

The VA and Fha loans have been able to do it but their strict appraisal guidelines make it tough to buy the often older homes in my market in Virginia Beach / Norfolk Area. 

Hey @Nicholas Hausmann - I can't provide much feedback on Springfield Illinois it self since I am up in Chicago, but it seems like from what everyone is saying it's a solid cash flow market.In general, it sounds like you have a solid plan...I recommend making some trips there to meet some of the local investors.  

Use the partner to scale, not the refi, split the cash flow according to shares dictate in your operating agreement.There's multiple ways you can approach your situation; I just wanted to provide some fresh eyes from the outside looking in!

Quotes from successful former “students” providing their first name and last initial only 8.

I assume you’ve got a loan that says you will be living there.

I see too many investors now, put a significant amount of money in rehab costs and over leverage themselves on hard money loans with low down payments, their properties are not selling and they are lucky to just payoff their current hard money loan via a DSCR refinance.