I am thinking on buying, fixing, and holding a property. What is your advise to get the least amount of money in the house after using HM/PM to buy and fix, and then refinancing? What are your thoughts about this? Thanks in advance.
To answer just the question "How do I buy, fix, and hold a house leaving the least amount of my money in the house?" the answer is to buy with cash, fix, and cash out with either
a private lender or a commercial lender with underwriting that only considers valuation, not acquisition price.
Example: Buy $37K house, put in $8K, get tenant after 60 days at $850/month, get appraisal after 70 days for $66K. At ~100 days, lender lends $49,500 (75%) which is more than basis.
It can be done. I've done it (numbers above) and many others on BP have too. Can anyone do it? No. Well, unless you buy some course for $xx97, then they will say you can do it.
Basically like was said, be all in at 75% of ARV. In 6 months or if you can find a lender that will do a product with less seasoning, refinance your cash out. Typical is 70-75% of appraised value. Then your running all cash out, 100% cash on cash return. That's the way to be!
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