I am searching for deals using the 70% Rule to BRRRR a townhouse in Alexandria, VA, but keep running into issues related to decreased inventory and high listing prices. 

Things are moving quickly and finding affordable inventory is a bit tough right now but making connections is a big start to get up and running!

There are so many great programs out there for house hacking. 3% down conventional, NACA, Bank of America down payment assistance, the list goes on.

When you refinance out of the hard money loan, are you refinancing into a conventional investment mortgage or a commercial loan?

We are prepared to offer: Purchase Price: $460,000 Down Payment : $23,000 (5% of Purchase Price of $460,000) Interest Rate: 5% = $107,815.60 Monthly Payments: $2,000 x 60 months = $120,000 (Principal & Interest) Term: 5 Years (60 months) After 5-year term: Lump Sum Payment of $424,815.60 from refinance with conventional mortgage Total Sale of Property: $567,815.60 $23,000 – Down payment $120,0000 – 60 Payments (Principal & Interest) + $424,815.60 – Lump Sum Payment $567,815.60 – Total Payment for Property Seller financing is the best way I can give her the highest possible price.

OR you'd have to save up 20-25% down payment and go the conventional route. 

Consider waiting a little longer and improve that credit score, smash some debt, and aim for the conventional loan.

The iRS will treat them as inventory.  

https://www.har.com/content/newsroom/Houston Real Estate Highlights in June:-Single-family home sales increased for the thirteenth consecutive month, up 13.6 percent year-over-year with 10,638 units sold;-The Days on Market (DOM) figure for single-family homes fell from 57 to 29;-Total property sales rose 16.9 percent with 13,090 units sold – the highest volume in history;-Total dollar volume increased 43.8 percent to $4.8 billion – a historic high;-The single-family average price reached a new record high, increasing 23.7 percent to $395,316; -The single-family median price rose 20.0 percent to $314,500 – also a record high; -Single-family homes months of inventory registered a 1.5-months supply, down from 3.0 months year-over-year and below the national inventory of 2.5 months;-On a year-to-date basis, single-family homes sales are running 25.9 percent ahead of 2020’s record pace.

Compared to the prior month, and indeed the preceding nine months, there has been an increase in available inventory, albeit slight.