After acquiring the property, they can refinance into a traditional loan down the road and repay the 401k or HELOC (plus some fees here and there). 

I work for a wholesale brokerage in Dallas and what I tell my investors to do is buy using Hard Money, fix it up, then refi right out of it into a traditional loan and get some of your money back that way you don't just completely drain your account.

@JoeI don't have good enough credit to get a traditional mortgage, so I suggested this option to my potential seller as an alternative.

My hypothesis is there could be unique considerations around:  1) insurance, 2) environmental diligence, 3) due diligence like estimating vacancy, and 4) how best to research leasing comps because commercial leases are so different among other items.

Lessons learned were when doing your rehab estimate focus on the expensive capital expense items first.

A couple issues you'll run in to trying a BRRRR in Tampa:- finding a quality contractor right now that has availability (supply chain is only an issue on certain materials such as shingles, windows, and other items but it does not affect every reno equally)- finding a deal that cash flows (or breaks even) once you refi.

.******************.comI don't know if that link will work they are not letting me share my pdf file BRRRR calculator document with you without signing up for the pro membership on the forum... its like 400 bucks. anyway have a look at the property if you like on google earth or any other way of your preference. it is *******************, Daytona Beach FL 32114I've attached a pdf format of the property as an investment with a traditional loan and not paying cash upfront.

What did pass, along with many other items, is a limitation of rent increases maxed out at once per year.

He has contract packages for wholesalers, seller financing and traditional, runs a title company and a land trust company too.

Not bad considering finding even a breakeven home right now seems impossible via a traditional model.