All Forum Posts by: Scott Chilton

Good question, Jeanette. When you refinance and pull cash out, your loan balance goes up, which usually means your monthly payment will be higher. That can lower your cash flow in the short term, but the upside is that you’re freeing up capital to reinvest in another property. The key is to make sure the rent still covers the new loan comfortably so the numbers stay solid. Done right, this helps you grow your portfolio faster while keeping your cash working instead of sitting idle.

Bo, that’s a great approach and you’re already doing the right things by networking early. One of the best ways to bring value to seasoned flippers is to help them save time or find deals. You can offer to help with deal analysis, drive for dollars, or manage simple project tasks in exchange for shadowing their process. Many investors are open to sharing knowledge if they see genuine effort and reliability. This kind of hands-on involvement gives you real experience while building relationships that can open doors to future partnerships or private funding opportunities.

Hi Bobby. I’ve seen this happen before, especially when appraisers treat detached conversions as nonconforming or secondary dwellings rather than part of the main home’s value. It’s worth asking your lender if the appraiser classified the rear unit as an “accessory dwelling” instead of additional living space. If so, request a second appraisal and include rental comps that show income potential for that extra unit. Showing how the rear space adds measurable value, either through rent or increased buyer appeal, gives the next appraiser a reason to factor it in. Doing that can help you recover the true value you created and set a stronger baseline for future projects.

Lately, I’ve seen a lot of investors leaning on private or hard money loans for quick flips since they allow you to move fast without waiting on a bank’s approval. If the numbers work and you have a solid exit plan, paying a bit more in interest can still make sense. It might also help you lock in more deals and build stronger relationships with lenders who can move quickly on your next project.

Adam, that’s a tough spot but not unusual for small multifamily properties in rural areas. You might want to talk with a local or regional bank that keeps loans in-house instead of selling them off, since they tend to be more flexible with income verification and property type. Another option is to bring in a private lender or small credit union that understands local markets and can look beyond just the tax returns. It could also help to show a strong rent roll and operating statements to prove the property’s performance. Doing this gives you a better shot at unlocking your cash without needing to change your tax position too much, and it builds stronger relationships with lenders who can support your future projects.

Jayson, that can be a smart path if you plan it carefully. Buying from a wholesaler can get you a good deal, but you’ll want to make sure your lender is comfortable with that kind of purchase since some lenders prefer traditional listings. If the numbers make sense and you already have a plan for the rehab and refinance, it can set you up for solid cash flow and quick equity. Just make sure you work with a lender who understands both the short-term funding and the refinance step after the rehab. Doing it right can help you build experience, earn equity early, and set you up for future house hacks with less guesswork.

Congrats on getting ready for your first BRRRR, that's an exciting step. My advice is to spend time building your team before you buy anything. Find a lender who understands BRRRR deals, a reliable contractor who can stay on budget, and a good agent or wholesaler who knows your target area well. This will save you a lot of time and stress once you're in the middle of the project. The payoff for doing this upfront is that your first deal runs smoother, your numbers are clearer, and you set yourself up to repeat the process with more confidence.

Hi, Hermia. You’re starting in a smart place because distressed and tax deed properties can offer great value if you know how to spot the right ones. The key is to focus on learning your local market and building relationships with people who can bring you leads — like wholesalers, agents who specialize in distressed properties, and even local attorneys handling probate or foreclosure cases. Start by attending county auctions or checking your local clerk’s website for upcoming sales. What’s in it for you is access to properties with built-in equity potential that many investors overlook. Just be sure to budget carefully for unknown repairs and always verify title status before closing.

Kay, selling toward the end of the year can still work out well if you plan it right. The main challenge is that buyer activity tends to slow a bit during the holidays, but the good part is that the buyers who are still looking are usually serious and ready to close fast. If your rehab is clean, priced right, and shows well, you can still get strong offers. You might also face less competition since many sellers wait until spring. The key is to price smart and stage it to stand out. That can help you move the property faster and protect your returns even in a quieter season.

Keenan, it really depends on how big the job is and how many moving parts there are. A handyman is great for smaller projects like fixing drywall, swapping fixtures, or painting, since you’ll save money and can get things done faster. But once you’re dealing with multiple trades or anything that needs permits or inspections, a general contractor makes life easier because they coordinate everything and keep you out of trouble with the city. Finding the right balance between the two helps you protect your time and your profit margin.