So about a 35% cash on cash return for my buddy each year on his $100,000.

A lot of newer investors hear older podcasts when people where buying brrrrs, making money on the cash out refi and then cash flow.

Hi everyone, first ever post on BiggerPockets!
I'm looking for advice on a situation with an investment property my business partner and I purchased in June 2024 under our joint LLC in Springfield, OR. Here's the bre...

Eventually, I’d like to start using the cash flow to pay myself and work toward replacing my day job income.

My plan is to mainly focus on cash flowing properties that make the 2% rule. 

Yes, you can do a cash out refinance on the property to pull out some of your equity.

If you don't have the extra cash, can you get creative with a private lender or partner stacked on bank debt? 

You can do a cash out refinance and pull equity out that way.

One thing to be mindful of is the cash flow of the property as you get into higher LTVs.

Quote from @Marc Zak: In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral?