We try to get as specific as possible when estimating rehab costs, as this is an area where investors tend to fail, often leading to poor returns and in some cases losses.

If a 100% loss of your investment would leave you in dire straits, then ABSOLUTELY do not take that money out of your house.The answer to your question requires more questions.

I am in a 3 month program to kick start my business with a very successful local investor and he has provided us with a lot of his materials he used while wholesaling and I know him personally and it worked for him so I am NOT trying to re-invent the wheel but I know my competition in they area and they are respected, honest and have been in this business longer - although they tend to rehab their projects but one of my targets is the motivated homeowner and its theirs too!

Are you Commited to working the hours and a program that will get you there day in and day out ?

Make a few contacts at banks around town who are willing to loan using some of these fha programs and other that except a lower credit score to get approval and possible 100% fin.

but it still is a conflict, and thereby inevitably leads to questions and loss of confidence when the situation above happens with tenants

Hopefully your losses (if any) are minimal.

Obviously, this will go up once I rent out fourth bedroom.2011 is a loss naturally due to start-up fees and cosmetic repairs. 2012 target goal is 14K in gross with 65% in operating income (this includes 20 percent vacancy).

Their loss.

Can you afford the payments even if the investment becomes a total loss?