First investment help

[Mandi Martinez]

I’m not sure if this is the right section to post this question, but I literally have hundreds of questions and am extremely overwhelmed. ANYWAY: I am ready to jump in and buy my first investment property but I originally planned on fix and flip single family homes, and now I’m thinking I should not close off buying a house to rent. The problem is I do not understand how I get my money back with a rental? It is clear that with a fix and flip the money invested will come back once the house is sold and then I can re invest my profit, but if I put a 20%down on a rental how do I get my cash back out of that house to re invest? I have saved up 65k which I know is not a lot to some but to me it is and I do not want to put it all (or a big chunk) into one property to make an extra $300/400 a month and no way to continue investing... What am I missing here?

[Michinori Kaneko]

@Mandi Martinez you want to "cash out refi" from your rental property after the property goes up in value.  lets say you buy a $100K home with $25K down.  You spend $10k to fix it up to make it nicer and the property value goes up to $120k.  Then in a year or two (and hopefully with some nice appreciation as well), you refinance your existing mortgage.  Your original mortgage was $75K, which should have reduced a little from your monthly mortgage payments, but now your property is worth $140K lets say.  then you can refinance a loan for 75% of your $140K, which is $105K.  the bank will give you cash for differential between the new $105K loan and the remaining principal balance of $75K loan, so you get your $25K down payment back basically.  Of course it's easier said then done as what property increases 40% in value in one or two years lol that's why it's important to buy at good price (below what it's worth) and force and appreciation (increase value more than money you spent).  hope that helps!