And ALWAYS follow up.Here are the numbers on the deal:- $108,000 Purchase price- $8400 closing costs- $70,000 Rehab Costs- $2,000 holding costs for two months (estimate is 5 weeks to completion but lets say two months, it wouldn't be so quick but equity partner is full-time GC on-site)- $274,900 ARV (Appraisal completed by bank)- $5,498 Selling Costs- $16,494 RE Commissions.Net Profit = $64,508 about 23.5% profit off of ARV.Now the fun part begins, I'll report back with pictures as we go through this.

However, if this is simply a case of spending a little less on personal lifestyle choices now during a cash poor period while you complete a couple of rehabs, I say absorb the lifestyle pain now and enjoy the profits down the line. 

I will give the the complete story from beginning to end 

Do the research completely in the area you are thinking about using.

After you've completed the work, you will likely have increased the value of the house so you'll have some forced appreciation.

If you hold them longer than a year you should be able to claim profits as long term capital gains which would lower the tax.

If they are looking for a pipe dream I simply work with my clients in the U.S. who do not have to overcome all of those hurdles to complete a successful transaction.Your deal size matters as well.

Also, this home has a completely finished basement with a Kitchen, Bar, and full bathroom.

@Daniel Pickford I completely agree with what @Brian Garrett said.

It's a completely different process for appraising, loan origination, and ownership structure between residential and commercial.Commercial is based off income the property produces, residential is based on comparable nearby properties.