Now the investor has increased the value and wants some of their capital back.  

That means out of the $65,000 you have to subtract renovation costs, holding costs, taxes, insurance, realtor fees & closing costs etc. and of course short term capital gains to get your Net profit that goes into your pocket.)The 47,071 home flips in Q4 2018 were completed by 37,379 investors, a ratio of 1.26 flips per investor.Homes flips completed in Q4 2018 took an average of 175 days, down from 177 days in the previous quarter and down from 178 days in Q4 2017.So, the average flipper gets a flip completed in 6 months, and makes $15,000.

You also have to take into account the long term capital expenditures.

Older homes typically will have higher capital expenditures, but if a home is well taken care of you can do well on them.

I have the capital to put 25% down for a conventional renovation loan, but the only thing is no one will lend me money if I tell them i want to flip the property in 2 months. 

It fit my goal for the first property which was to learn the house buying process by buying something move-in ready that I didn't have to do any interior work on (all the main capital equipment has been replaced in the past few years) since I travel every week. 

@Matthew DrouinYou as sponsor need to be strong enough to carry the personal guarantee yourself, or some lenders will bypass personal guarantees when the borrowers capital contribution is at least 50%.

Purchased from the developer with plans to capitalize on significant operational efficiencies due to owning the property next door.

This could include Capital Raising, Deal Sourcing, Underwriting etc...

Nonetheless, it closed in February, and because of the one year hold, the gain will be taxed as capital gains.