Over the last (3) years I have seen some extreme cases of expedited equity where an investor buys an older home or "Ugly Inventory" and then bats clean up on the ARV in 12 months.To give you an example I helped an investor refinance her home in 2023 pull cash out to buy a $65K home all cash.

And when a furnace does go out, the property manager will fix it.You can get a property manager for a long term rental too but the numbers in terms of cash flow just don't seem to work well as they do for str's. 

Cash flow is mainly a mechanism of leverage in the deal.

Purchase price: $76,000 Cash invested: $25,000 Bought a foreclosure to fix and rent.

I will likely buy with cash and not hold a mortgage. 

Depends on really what you are looking for:-Speed - some HMLS can go "no appraisal" so can close very quickly and beat cash offers if you are in a competitive market to buy-Interest Rates - can range anywhere from around 8% to 13% (same with "points") but not usually as huge of a concern for flippers since the terms are so short-Leverage - depending on your risk appetite / capital - this is also a top concern for some (almost always over and above rates/fees) can see anywhere from around 80% LTC to even mid 90s LTC (including 100% of rehab budget)

If the contingency reserves were paid in cash, they may be refunded to the borrower.The contingency reserve may be considered as part of the total renovation costs or the borrower may fund it separately.

Found this opportunity appealing based on positive cashflow/favorable cash-on-cash return.

Any wholesaler who says huge cash flow will only get D- buyers.

A common strategy used by investors, such as those operating through PadSplit, involves purchasing the property, completing basic rehab, refinancing, and then using cash for the interior build-out.Another potential red flag, even without converting common areas, is the addition of individual locks on bedroom doors.