You also need to know which neighborhoods are “up and coming,” meaning they are going to be increasing in their desirability, and which ones are losing value.

You also need to know which neighborhoods are “up and coming,” meaning they are going to be increasing in their desirability, and which ones are losing value.

Even a modest 10%-15%  discount will reduce your risk and increase ROI, as well as improve your cash flow numbers. 

Part of my concern if for some reason the inspection comes back with something that will increase my rehab costs, would I be able to walk away from the deal as well?

Getting rid of the MIP is just a way of increasing your cash flow.

Having done 75 buy-sell deals 2003 thru 2010 and subsequently losing my entire portfolio 2008 thru 2013, I've been clawing my way back from a position of no cash whatsoever and remain deeply entrenched in the 'turnaround' via being a painting contractor, flipping the odd house here and there, and as an agent with Keller Williams (focused mostly on higher-end mountain properties).

I think thats a great idea to hold the lower interest rate because with the time now of high interest rates and these don't even compare to years ago a 1.5 percent increase may cost a couple hundred bucks a month.

Refinancing constantly is a bit expensive and most require monthly payments immediately, which will increase your holding costs, if you haven't found a home to flip/rent immediately.Theoretically, if your house appraises for $425K on the low end, many banks will give a HELOC based on 90% of ARV, minus what is owed on the home. 

The value of this home increased about 40K in 1 year.

My principle in this scenario would be $6K.Cumulative cash flow - Total cash flow for this time period (Total Income minus total expenses, including PITI)Debt paydown - Initial debt balance at purchase minus current debt balanceMarket appreciation - an increase in appraised value without extensive rehab.