There are too many variables (as you know) that will cause massive losses.

Because they are generally variable rates (con) but usually as you pay them down, the minimum payment decreases (pro).  

One issue that is mostly unavoidable is the closing costs if you choose to finance, since a lot of these costs are fixed and not variable based on the loan amount, so you will inevitably pay what seems like a high amount on closing costs on these low loan balance / property value properties. 

What did you see in cash flow on average with your turnkey properties after incorporating fixed and variable expenses?

Where the 2 years would almost certainly come into play is if you were asking to include your variable incentive pay in your DTI. 10% down is great but I've been hearing that they are adding several points worth of fees to 2nd home loans, which makes it closer to 15% down by the time it's said and done but you aren't getting the equity pay down from that extra 3-5%. 

Hi Micah,There are lots of variables here but this is what I know.

Hi Kali,I'm not sure what rental calculator you are referring to, but I use an Excel spreadsheet that has the variables embedded which makes the process easier.

That's not for everyone as there are many variables involved with building and I have experience in new construction. 

My appraisal came back at 1.1 mil which with 75% LTV and the money I cash out would pay off my variable rate HELOC.

I'd highly recommend learning a lot more about it.Whether cashing out of your personal home, would depend on a different number of variables - lowering rate/payment, what you are using your cash for - general purposes or buying more assets, cost, etc.