All Forum Posts by: Tim Steward

@Brent Coombs ohhh okay got it. Thank you! So you just get back the difference of the amount owed on new loan vs the old loan. And to answer your question my plan is to only do this for my first two properties if possible. After that I hope to have enough money saved and built up through cash flow to start buying through either private money or traditional 80/20 mortgages. And wow thank you for that information, I did not know that. So I'm assuming that's in regards to the FHA loans or all refinances? Thanks again for taking the time to provide the insight and information much appreciated!

@Brent Coombs Okay I'm starting to get a grasp. So say I buy at $85,000 on a property worth $100,000 put the $5,000 in and force appreciation to $120,00. With the FHA loan at roughly $2,900 plus the $5,000 I put in for repairs. I've put $7,900 of my own cash in. How would I get that money back is my question?

And of course! Definitely want to play the long game, I just really like the idea of getting started using this method as I don’t have a large amount of cash on hand 

@Melvin List okay got it. So hypothetically if I get 3.5% down on a $100,000 home then put $5,000 in repairs and increase the value to say $120,000. Then I get a conventional refi for 80%. This is where I get lost lol. How do I get that $8,500 I put in back? Thanks for the help! 

Thanks for the input! And yes good point I would have to check on how that works with an FHA loan as far as getting the loan approved for a distressed house. I also know the 203k loan is an option as well. However my main issue was trying to figure out how the numbers would look as I tried to pull my cash out of the initial FHA loan. I get how the refi works on a property bought in cash but how does it work when I have such little cash invested. Once again ANY help is appreciated!

Hey guys, 

I am in the educational/planning phase of my real estate investing career. I plan on starting out with a house hack using a low down payment to buy a duplex and rent out the other side. I would love to incorporate the BRRRR strategy with this house hack. However, I am just having a hard time understanding exactly how a conventional cash out refi would work with the FHA loan. I have been trying to get the numbers down and have just not been able to grasp the concept. Any help/explanation of this concept would be MUCH appreciated!!!!