@Benjamin Louie ic systems has an upfront setup fee and advanced told me they don't collect in North Carolina 

But please be aware that (1) real property purchased using 100% leverage will almost always have net cash OUTFLOW on a monthly basis, be vulnerable to tenant loss, emergency repairs, and general deterioration.  

Hard to make it cash flow.Now let's compare creative financing, Subject To in this case and the seller wants some cash up front, for you to take over the loan payments and it's yours.

I would expect low cash flow.

Here are some rough numbers on the deal.Purchase = $118kRehab = $65kRent = $2000/monthMortgage = $900/month (conventional 7.8% rate)ARV = $250k (very few recent sales/comps have me questioning this number more than my past deals)My plan was to cash out with a DSCR loan in September, but with rates high and values low, I am not considering waiting until next spring to conventionally cash out, saving money up front and getting a lower rate.

The twist:If I don’t proceed after due diligence and the seller fails to repay my $200K upfront payment within the agreed timeframe, I would pay off the bank’s $200K loan and take ownership without contest.

If that is the case, cash flow is a necessity.If you have the means to absorb negative cash flow then you should concentrate on total return.  

Traditional methods and that much cash might be a barrier.

Hello @Craig Cann,It is tempting to chase properties with strong initial cash flow.

We underwrite all fix and flip deals up front before any commitment.