Those items will drain your cash flow dry in a hurry.If the seller could show you a gut up reno with everything new that's different but I doubt it at the price you are buying at.

With the potential for the ARM to hit 10+% (with 6/2 caps) at year 7(worst case), the cash flow could almost completely dry up.I'm going to try to line out alternative financing as Jason suggested, but I'm leaning towards the higher down payment to lock in 30yr fixed financing if I only have these options to choose from.Thanks for the input,Mike

Now home price appreciation has slowed dramatically in many of the flipping meccas and the availability of discounted properties has dried up." 

Below are some facts of the opportunity.Master Lease purchase price: $500,000Monthly rental fee: $1,200Sublease fee to dry cleaner: $4,350Net profit: $3,150My Intended % of down payment for purchase: 15-20% Loan amount: $400,000-$425,000QuestionsAre there any lenders for this type of product, and what is average interest rate I can expect?

So I want to come back and start here.I currently am a part time employee at a Dry Cleaners and an Uber Driver in the Northern Peninsula.

The 2-4 unit multifamily well in Greenville is dried up lol.

I currently have a water mitigation team out there that will take 3 days to dry out the place.Does anyone know if this is normally covered in a policy?  

Never let the networking funnel dry up. 

During the summer, smoker induced mulch fires continue to be a huge issue.Yet I often see smokers around fellow investors building, with piles of dried leaves blown up against the building, just waiting for an ignite!!

(We ultimately moved back but the cost of holding the property unrented over 4 years would have been equivalent to the equity lost) Issues that impeded home purchases during the crash:  Credit dried up:  ie, the mortgage business transformed from handing out mortgages to anyone with 0% down to denying mortgages to people with 800 FICO scores.