@Tim Bradley It is better that you are going into the BRRRR strategy with some perspective and experience with having invested before because your expectations will naturally be more realistic.

But once they have skin in the game they are far less likely to look elsewhere or go with someone else.

There is economic development coming through the area so I feel good about natural appreciation.

ThanksGaren The term like-kind refers to the nature or character of the property and not to its grade or quality. 

Larger deposits mean you have more skin in the game and make your offer stronger.5. 

But almost all hard money lenders will definitely want you to have LLC or similiar, some bank statements showing funds for reserves and any skin in the game.

A million ways to skin a cat. 

It’s okay to go in  at 60% ask or ARV  to get your feet wet, once you intentionally lose a few that number will naturally creep to 70-80% and maybe you find the perfect property and are willing to go in at or above ask.

This is a couple thousand $$ at risk for both of us, which I understand is the nature of the business but just wondering if there's a more creative way to avoid this?

If you want top dollar, I'd consider at least trying to find the cat's favorite places and blast it with some Nature's Miracle.