But they won't typically cash flow at all at 20 to 25% down, especially with the significant rise in property taxes in Madison.Which zip code in Madison? 

We are typical W2 workers in corporate America (at least for now).

Typically, you should try to be all-in on a property for 70% of the ARV (After repair value).

Just pay yourself the 8-12% they typically charge and learn the ropes for a couple years. 

Keep in mind banks typically price construction debt at WSJ Prime +1% which means you are looking at 9.5% interest even on bank originated debt.

 16 terms you need to know in commercial real estate:1.Internal Rate of Return (IRR): A metric used to estimate the annualized return on an investment based on the timing and magnitude of cash flows.2.Cash-on-Cash Return: The annual income generated by a property expressed as a percentage of the initial cash investment.3.Discount Rate: The rate used to discount future cash flows to their present value in financial models; often represents the required rate of return.4.Capital Expenditures (CapEx): The funds set aside for property improvements, renovations, or major repairs.5.Gross Operating Income (GOI): The total income generated by a property before subtracting operating expenses.6.Operating Expenses: The costs associated with managing and maintaining a property, including utilities, taxes, insurance, and maintenance.7.Debt Service Coverage Ratio (DSCR): A measure of a property’s ability to cover its debt payments, typically calculated as NOI divided by debt service.8.Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the property’s appraised value, used to assess risk in financing.9.Equity Multiple: A measure of the total return on an investment, calculated as the ratio of total cash flows to initial equity investment.10.Residual Land Value: The estimated value of land after deducting development costs and desired profit margins.11.Sensitivity Analysis: A technique used to assess how changes in key variables (e.g., rent, expenses, interest rates) affect financial model outcomes.12.Operating Pro Forma: A projection of a property’s income and expenses over a specified period, typically used for budgeting and financial analysis.13.Cash Flow Waterfall: A structured distribution of cash flows to different stakeholders in a real estate project, often involving equity investors, lenders, and developers.14.Leverage: The use of borrowed funds (e.g., a mortgage) to finance a real estate investment, potentially amplifying returns but also increasing risk.15.Equity Investment: The amount of money invested by equity partners or investors in a real estate project. 16.

For example, right off the bat you are calling this a “loan” yet it appears to be a sale of your ownership - ie no loan involved. 

Using the roof example, where can I find out how old the roof is or when it was last replaced?

This is something that typically has an associated cost either in a slightly higher interest rate or in points.

For example, you have a medium sized remodel (maybe similar to your sunroom project.