Private lending payback

[Marcus Andrews]

So this may be a dumb question but I'm going to ask it anyways....

I am new to investing and have done research for the past couple years. I have decided to make the jump this year. I have been looking at a few properties and am in the process of possibly putting in some offers. I want to go with private money and I can raise the money for a down payment from 2 (possibly 1) investor. 

My question is how do I pay them back. I see people talking about giving them 10% and paying them back in 12 months but I can't generate that type of cashflow from one property. I get that you can do that in a flip and pay them back but I don't see it in a buy and hold.

I also am aware of doing a cash out refi, but 1) I thought you had to have the property for a year before doing a cash out?? and 2) I won't have enough equity in the property to pay that investor off. Maybe I'm going about this wrong but that is exactly why I wanted to ask people that have done it.

Thanks for everything guys,

Marcus