Being that this market is now changing due to the very low inventory, you might be more successful with listing flips mid-project because buyers don't want to take the chance on losing out on hot properties. 

Time is of the essence in a hot market like San Diego.Now, I'm just asking if anyone has done this method, because I can see how it would work.  

I also do realize that all of this is easier said than done in a hot market ... so yes we all do need to exercise some discipline in our acquisitions to make sure we can still manage our risks and make the payoff worth the risk and effort, regardless of what sort of properties we are going for, or else don't buy if it is not.

My community is really hot right now, and there are still many properties left.

.* Market is hot, could be a good time to sell.* Market is hot, could be profitable to stay and keep accruing equity, also neighborhood is improving.I am starting to feel bad about the work that needs to be done there.

Im curious what you all think about what the federal reserve interest rates will be in the coming future.Personally I don't try to predict the market especially the Federal Reserve however this is unique we seem to be we are approaching the top of the market with how hot it currently is.

I just completed a deal that was almost spot on to your example above, and in a fairly hot market.

The best part is you can throw the property on the MLS at anytime if the market gets hot.

And keep the $5k for the 0% APR debt in reserve (or pay for it close to maturity) and only use it for a smoking hot deal.

But truthfully in a hot market rents don't align with price.