I usually tell my clients to begin this way, that way they have an idea of what repairs cost, how much taxes/insurance/maintenance are, and what homeowners deal with on a daily basis.

Purchase price $50k, repairs $12k, ARV is $85k... and he paid cash for the deal.Any input is welcomedDanny

My thought is it would be nice to take some cash out for any repairs as soon as I could perform a Quiet Title.

As a bonus if your end buyer has credit problems but good income and good job history offer to spend 1k of the original 25k deposit on credit repair for him...Why would you take 1k out of your pocket you might ask..

But the other day I was on my way to one of my properties a transmission repair shop I pass all the time is up for sale.

The first has to do with inspecting the house to find out the needed repairs.

This lets you leverage your capital to do more deals.The refi for most investors is to get the lower rate locked in and get some cash back to invest again.If you run out of cash or have "trapped equity" and little cash left then you have to partner with other investors to do deals.I have seen it work sometimes but generally it is a mess unless you can do multiple deals with one partner instead of partnering with one investor for this project and another one for the next.The problem with partners is down the road they get different reasons for selling or exiting the property early.I don't see the refinance bank loaning up to 100% of current value and letting you pull out the 30% and get it back.What many investors do is take on a property with maintenance and vacancy issues using hard money.Fix the problems and then create a higher value for the property.In commercial the weight is given to the income approach.So if you had 50 unit building.Units rent for 500 a month but are 50% occupied.So currently 150,000 gross income yearly.Value roughly at a 10 cap at 750,000 going in.You get for 600,000 and put 150,000 in repairs fixing problems.Total funds needed is 750,000.HML says they will fund 525,000 and you put down 225,000.You work hard and get occupancy up over 6 months to 90%.270,000 gross rents with NOI around 135,000.New value at a 10 cap for refi is 1,350,000.Refi at 75% LTV would be 1,012,500.You get 262,500 back and then your original 225,000 you put down based on the new value.I hope I am making sense.

If you don't keep an eye on your property managers, they will do things like cut corners on upkeep to make profits look higher and then you will get stuck with a big money repair down the road.Maybe your better bet is commercial property with long term NNN leases.

I just bought the place and don't know the repair history of the dryer.

They never asked if I lived there and I never mentioned it.It was no big deal, I gave them the numbers to call if they needed repairs.