However, I assume banks will be losing big time in such a scenario.

Of course, if your mortgage payment is PITI (including taxes and insurance) you can nix those from the above list....and likewise, if you're managing it yourself you can lose the prop management fee.When I don't know much about the property and am just crunching numbers I'll use 8-10% for vacancy rate, 8% for property management, and 5% for each of capex and maintenance (total of 10% for both).If I know the property is new construction I'll use a smaller number for capex and maintenance - if the property is old, I may figure a bit more.

It loses you money.Think of your cash represented in 2 forms, liquid (cash flow) and solid (equity). 

Says he isn't losing any money but also isn't making any. 

I currently have a single family rental and I am under contract with a flip I will lose over 10k on and both deals made me realize I want to put my focus primarily on MF deals.

I will still be actively investing in the Great Falls area and don’t want to lose connections here with similarly minded peoples.  

Two you end up losing money each time one of these fake lenders scams you.you find PML at meetups and through referrals of investors you know are real.other wise stick to reputable HML  you can find them on the internet.. but start with the big ones so you understand what they are asking for all of them pretty much follow the same script.so check out.Lima ONeLendinghome  ( which just changed its name.Lending ONeVisioCivic and any other number of HML that are real.. 

And the reward on the other end is financial freedom and flexibility that allows you to support your family and your dreams without running on that RVU treadmill and feeling like taking a vacation means losing money.

We will likely lose this dispute.  

Also I put emphasis on not mentioning too much about what your doing: alot of contractors want little to do with investors and flippers.