I decided to help out a couple (family members)who overcharged me and I think they were the worst painters on the planet.I had worked them by the hour in the past doing odd jobs I could have did the paint job with a One Haired Brush in half the time they said it took.:)

Your coverage seems pretty good.In my mind, though, I always consider the worst case.

We plan on 25k purchase price, 15-20k into it then when work is done it will be worth 60-70k, but thinking worst situation so 60k.

They do this loan thing for a living after all, so they know well what can go wrong ;) Just make sure you run some worst-case scenarios on repairs, vacancies, etc, while taking into consideration your cash reserves and income.

Even worst case scenario HELOC's max out usually at 18% (margin and indexed considered).Credit cards and HELOC's have the same risk since both financial facilities base their rate off a fixed margin + prime rate and prime fluctuates.

Worst of all, the inspector I dealt with (a local company with very strong yelp reviews) told me the company does very poor quality rehabs.  

Thanks guys this is really helpful, one more question:I read at least 10 times in different books that you need to buy the worst property in the best neighborhood - how about buying on the worst street in the best neighborhood.

What was your worst and mistakes we should avoid.BTW podcast 56 with Ankit is a really good one for tax liens.

I have a tenant that just moved out, but left behind all their furniture, food and worst of all they left their cat!

We're pondering the same question here as well... and actually coming up with some of the same ideas for solutions.One of the biggest challenges we've had is that tradesmen with lots of 'hands on' experience tend to be the worst organizational thinkers in the land, and are oftentimes stuck in their ways and refuse to consider alternative means of managing a project.