Proof of Concept - Infinite return!

[Huy N.]

Hi BP Family!

Last year I posted about this boring deal that I bought 3 years ago. It is not boring anymore as I just refinanced and took ALL of my money out, plus more! My mortgage increased only about 100$ per month and I just realized that I am sitting on a property that is yielding infinite return! (You don't put anything down and still have cash flow)

When I 1st heard about the concept of infinite return, I thought it was bogus because I thought there is no such thing! When you invest you have to put the money in after all right? But I think real estate is one of the investment vehicle that can let you make money both on cash flow and equity increase, then refinance it out to get the money back and capture equity gain, while still owning the property with great cash flow.

To summarize the deal: I bought this house at $79,000 3 years ago with 20% down 5% interest + fee ($18000). It was renting for 1100$. In 2015, it appraised for $120,000 and I refinance out 25% of it at 4.75%, which is $30000 minus fee. It is still renting for 1200$

I can’t thanks J Scott enough for his book “The book on flipping house”. It saved me from a flip that could went bad. And now it helped me get all my money back on a house. The section where he talked about working with the appraiser is priceless...

I can't image how happier I am if i could do the same thing again in the future but on a larger scale, 300k instead of 30k, 3 Million stead of 300k.....

Thanks @Joshua Dorkin and @Brandon Turner and everyone that are providing and building this wonderful community.

Huy