Step 1. Purchase the home using hard money.

After Repair Value $100,000
Max Hard Money Loan 70% $70,000
Purchase Price $65,000
Rehab Cost $5,000
Estimated Closing cost $1,200
Loan origination Fee 5% $3,500
Amount Need To close $4,700 ( not including insurance )

Step 2. Refinance and pay off hard money lender.

Appraised Value $100,000
75% Refinance $75,000
Monthly Rent $925
Monthly PITI ( 30yr @ 5.5% ) $566
Management fee 8% $74
Monthly Cash Flow $285
ROI 68%

If you have less than 4 mortgages including your primary, you can get a 70% hard money loan. If you have more than 4 but less than 10 mortgages you get a 65% hard money loan.