I am happy to say that we have purchased our first rental property. After rehabbing now nine houses this year, we feel that we need to upgrade our business strategy as we move forward. We are not looking to move away from rehabbing but I do see a great opportunity in buying properties in renting. I am at a lost as it relates to purchasing rental property and refinancing in order to get your cash back out so you could start the process once again. Any input regarding this topic would be great. I guess part of my issue is the 75% LTV issue as a relates to the properties overall value. Meaning if I don't buy the property at a heck of a discount then getting my money back out of the property after purchasing the property is extremely difficult to do.
Here are my numbers so please provide input as you see fit.
Purchase property for 100k
Renting for 1400 both sides
Put 30k down
Now trying to refi as we speak so I can buy another property.
What am I missing?
You have it right. You need to speak with multiple banks to see if you can find one to refinance you at better terms.
Otherwise, always make sure you buy at as much of a discount as possible and OR improve the property to raise ARV appraisal.
Congrats on the massive cash flow from the duplex I dont know what the problem you are seeing in either scenario you will be able to get most of your money out of the property after 6 months,
if the property appraises for $130 or $ 100 for since you put down $30k 75% of either appraisal would give you between $25-32 k back, plus the massive cash flow would raise your dti ratio for better finance terms for your next property Keep going nice job
Great. Thanks for the feedback.....
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