The lender's credit was also confirmed with the GFE and HUD estimates; it was supposed to be enough to cover all of our closing costs, as well as have some left over for principal reduction.We just received the finalized HUD, and there is a big change in the amount of credit that we are actually receiving (a decrease of a couple thousand dollars). 

The purchase price decreases every month.  

A year goes by and I want to refi out of private money into an 80% loan at a lower rate, thus increasing my cash flow, decreasing my risk.The idea is that I use OPM to purchase, rehab and rent the property, and that I can obtain an income based appraisal after a year (assuming 680+ credit) to value it high enough for an 80% LTV refinance.  

The reason being is that nearly all ARM's originated on the past 10 years or so have actually seen their rates remain the same or decrease slightly.

IF the values decreased during the pre-construction phase, you simply would not purchase.)I'm all about win/win deals where everyone can make money.

Property taxes more than likely won't decrease if this is a distressed sale.

Sounds like this deal would be a better fix-and-hold instead of fix-and-flip.Yes, the houses around it may decrease the ARV.

BP,

I recently purchased a 4 bedroom 1.5 baths with a huge lot in SC, which is pretty rare as 3 bedrooms are the norm. I renovated the entire house, new flooring, new ceiling fans, sliding glass doors, finish...

When it's loose, they sky-rocket, and the difference in prices between these and the prime properties decreases.

But it better be a good down payment.Otherwise I would only do a lease option with the option decreasing over specific intervals as on time payments are made or a contract for deed where the deed transfer upon final payment of the contract.