More like  2X to 5X the cash out.. these are done with builder developers on their deals So put out 300k get 300k back in profit plus the interest rate. most small builders/ developers need to have a equity partner so you just do both you lend the money and are the equity partner.. pretty clean..

Borrowers like that.Since money is the lifeblood of all house flips, I consider this a win-win for everyone.

A grand negative cash flow is not the issue.

What you have calculated is not cash on cash return.   

“ cash flow returns” almost always compare horribly to a simple bank CD after you deduct for insurance, prop taxes< vacancy, capex, prop management (or your personal time.) etc etc etc. 

The third property has a nice cash flow.I am wondering if there are steps I can take to reduce the cashflow issues of the 2 properties before obtaining another property, like pay down the mortgages or should I just save the cashflow from the third property to pay for any future expenses?

Quote from @Ruth Garcia: @Jamie Banks Congratulations, great win!

Congrats on your cash-flowing property in Chicago! 

So if you are anticipating higher rents and therefore higher income next year you may want to wait till then if you are trying to maximize the amount of the cash out refi.

I would be looking to cash-out between 300-400k.