Even with renovation costs and insurance costs the fix n flips are still making money.  

So, if you need to make a 25% down payment on a $200k property, then you'll need at least $50k (+closing costs).

So if I do a good analysis of the property (including all the costs) and the property generates monthly CF with a DSCR above 1.1, I would be removing a big risk because the numbers add up.

.$8,000 would likely go away in closing costs.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

You can also assess a dollar amount that you value the cost of these requests to be, and ask for these as a discount from the purchase price or a concession to you for closing costs. 

Hi Chris, As financing costs will be a big factor in determining profitability, you should be asking HMLs for proposals to fund. 

I feel this gives me the flexibility to find the right solution for my client and not just sell what my bank offers.I'll also throw in my 2 cents on common differences I've seen in my career:CDFIs - Because of their subsidized financing structure, they have the ability to be a low cost lender (and sometimes provide grants).

But if borrowing costs remain high and interest rates don't fall as many people expect, cap rates will have to decompress further. 

.), inclusive of any renovation costs.