Buy and Hold (Cash + Rehab + Refinance).. How do you do it?>

[Triston Murray]

Hello all. I apologize if this post is poorly written!!

I have been doing research into the hold strategy of: buying with cash (personal or borrowed), then rehabbing, renting and refinancing with conventional after seasoning. This strategy would only be used on places that can be purchased and rehabbed for less than 60% ARV.

My issue, and question for everyone I suppose, is one of preparation required, timing and RISK. I'm such a newbie to the game and only just purchased my first owner occupied multi-fam in Chicago in Feb '14. After a very dramatic 10+ months with ****** (ex coworker) tenants (BIG MISTAKE LEARNED EARLY), I hired a PM and am now looking at roughly 800 net cash flow per month after ALL expenses (including a 100/mo rainy day fund)....

Now that I'm cash flowing I want to start making moves again. SOO: does any one use the cash+rehab+refi+hold strategy? what did you need in order to get it going? is it easily rise and repeatable? did you use your own money? 

...I'm fairly young 26 and although i have decent income/ credit... not much saved... but this strategy seems so solid that I feel very confident I could pay back a family member if they lent to me... i'm even entertaining the idea of hard money loans, but am not too familiar with their terms rates etc..... I'm I wrong for having faith in a system I have not proven myself? What would others do if in my shoes to expand quickly?!