All Forum Posts by: Andrew George Dennis

I just did a cash-out refinance on one of my California rental properties from Sep-Nov and it was at 3.5%. I would assume it depends on your credit, equity, etc. My mortgage broker also went with a bank who she thought could get the job done (as opposed to the very lowest rate and dragging it out forever). I actually found her off of BiggerPockets so let me know if you want her info.

I can tell you that we are executing a somewhat similar plan to hers.  I can't speak to the "paying it off in 10 years part"... that isn't part of our plan... as we use the cash we get each month to live on... but otherwise the $300 per house is totally feasible.  As to the purchase side, we target homes under $75,000 a door that can rent for at least $1,000 a month.  This will net us about $500 a month after Principle, Interest, Taxes, and  Insurance.  If you account for a $100 maintenance reserve, this gives us $400 net per month.  The better either of the two numbers (Purchase price below $75,000, and Rent above $1,000) can be, of course the whole thing functions even better.

I would suggest the bigger "key" to the whole puzzle is to "buy right".  We have worked through wholesalers and picked up properties that already have $50,000 equity in them at closing. See screenshot below. So you could literally instantly flip this house and get the majority of your money back... but for us the goal is rentals, so we will hold onto the equity, knowing that we are 'sitting pretty' down the road.  Here is an example of ours.  When we closed, the property was worth $95,000.  it is now worth $127,995.  This house rents for $1,400 a month.  We didn't finance this one, and it nets around $1,100 a month.  If it was financed it would probably be around $900 or so.   If you find the really great buys, it will totally change your strategy, and your numbers!

All the best!

Randy