I'll take an infinite return on my money all day every day.Don't forget about gaining equity through appreciation and principle pay down.And keep in mind that's after the equity you already forced through rehab.Also don't forget about the tax benefits of rentals.Plenty of reasons to LOVE the BRRRR strategy if you can find deals where they work!

At the end of the day, you are investing to make a profit, and you will be taxed on that profit regardless of whether or not the profit comes as normal interest or return of discounted portion of principal balance.  

Utilizing a HELOC is often a good idea so long as you purchase a cash producing asset that has returns higher than the cost of the HELOC interest.

Can you give us an update when you return on your opinion of investing there? 

You could technically return their deposit and let them look elsewhere.

(My Tax state is Arizona).Then I assumed a return on investment of 12%.

Most DC/NOVA investors I come across think its easy to make high returns and its not in Baltimore.

So a decent return.

It buy's it at a very high cost.You save the prevailing mortgage rate of say 5% but lose out on the opportunity value of investing it elsewhere at a higher return.

If you're buying with cash you may be able to get a higher return by owner financing, compared to renting.