All Forum Posts by: Colton Duke

 It does, thank you. I've shifted my thinking. Currently working on securing a cash investor for home purchase and funding the rehab myself to have skin in the game. 

 I say this completely understanding the fact that I am largely ignorant to the process, but a common theme I always hear is that if you can use other peoples money to make money, it is good. So, why is this such a bad strategy to utilize? I ask the question simply to gain understanding as to the why!

 Thank you for the feedback. I've gotten similar advice from people in my network that are knowledgeable on the process. 

 Thank you for the feedback. What's your thought on the cash out refi as long as the cash flow is in the green or at least even if the primary residence were to be used as a rental, and the cash out used to purchase another property?

 Gotcha. So, bad idea unless there can be a positive cash flow. 

Hello! Been listening to BP for awhile, and the gears are really turning at this point. 

Background: 28, engaged, $150kish in joint gross income, and bought a home 3 years ago utilizing Indiana's down payment assistance program. That lien falls off tomorrow. 

Owe roughly 188k on the house (3br, 2ba 1600 sq ft .86 acres brick ranch non hoa neighborhood 3.5% rate $1350 a month payment including mortgage, taxes, pmi, ins, etc.)

I really want to purchase our first investment property, but not sure what to do. I like the idea of a flip using hard money and a private investor which i could find relatively easy, or on the other side buying a single family property in the area and renting out the current home which i think could cash flow $600ish a month.

The issue is not knowing the best route to go to get the funding on the single family purchase. Cash out refi could give us $60kish i think for a down payment, but that would essentially make our cash flow on the current home go to zero, or possibly even the red. Is it a necessary evil to refi into a higher interest rate to get cash and be able to utilize an fha on a new property? 

Also, ALL liquid cash is tied into a wedding rn, so the refi could also give us a decent emergency fund regardless of the higher monthly payment, which would not be a big financial burden to us. 

All advice is much appreciated!