But you'll be cash flow negative for a while. 

If we crush the rehab I think we can even push closer to 200Cash-Out Refi Amount: $131k (75% LTV of the conservative 175k figure) Profit if done as a flip: 60k. (175k - 115k purchase price & rehab)Cash Invested: 18k (This accounts for $7,500 for down payment to lender, $2,000 in EMD to seller, lender fees, inspection, insurance, title, projected 3 months holding costs at $1000 per month)----------------------------------------------------------------------------If I do it as a flip, from what I understand, I'll be hit with a ridiculous tax bill (24% short term capital gains + 15% self-employment tax), leaving me with roughly $36k after-tax profit. 36 - my 18 invested leaves me with 18k increase to my net worth.

This implies the cash flow will improve with time.  

Purchase price: $68,000 Cash invested: $5,000 Sale price: $99,000 4 Unit quad in Medina NYRenters were tough and management company's locations are too far for a regular check up.Had a renter pass away and then DCS came in and the house was condemned due to farm animals in the upstairs unit where the person passed.We were too far to keep tabs on this investment so we sold the home.

Cash out to invest in other properties? 

Your first thought, without gimmicks is great, but will you have the cash to buy any of the properties because that is always the first gimmick of wholesalers?

We will eventually split the cash flow.

Id imagine you want to at minimum break even if not have some healthy cash flow while you buy and hold.

It sounds wild to think of it this way, but certainly will free up cash to invest in the next couple of years.  

The family knew it and did not expect much out of the property.Even though they had an agent in the family, they were looking for a quick cash buyer.