As long as your purchase, rehab and closing costs fall below 70% ARV then you won't have to bring any cash to close. 

They said I'd be free and clear and account will be closed.

I was a Realtor when I purchased it in 2019 and I used my commission towards the closing costs and I am a U.S.

No problem, though—I can get close to $100K saved by the end of the year, so I’ll be in a much stronger position.My question is, is there a specific number I should be striving for that would put me in a good position to invest in real estate?

I like to keep things as simple as possible, but I was excited to dig into this one because knowledge is power, and the better we understand these things, the more we can use them to our advantage in real estate.So here’s what’s happening—your CPA is basically saying you’re already showing a loss on your taxes because of all the expenses that came with closing, insurance, HOA fees, etc.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details:After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Quote from @Dinesh Nair: I am a Canadian investor with a US corporate entity- we closed on our first property and now working to find financing through a lender… however rates keep changing all the time.. is there a site to track rates ? 

Buy box: Location: Approx. 30 min drive to Boston Heights, for workNeighborhoods: Decent walkability score - not far from shops/restaurants/trendy neighborhoodsIdeal tenants: Close to hospitals/universities/schools for professionals/students/familiesBudget: $175-250K - Buying w/conventional loan, 5% down/ approx 20K reno.Property type: MFH 2-4 units - preferably side-by-side, with a yard we can fence for our dogUnits: 3+/1+ - better if 1.5/2 bath per unitTimeline: Plan to live there for 2 years, but possibly only 1 year if we find another investment opportunityGoal: Focus on appreciation - would like to see cash flow in year 2-3 (the year we move out), including overhead (Vacancies, Maintenance, Utilities) and budgeting in PM if eventually we don't manage ourselvesValue add: Opportunity for some forced appreciation, but not a full reno - cosmetic upgrades and updating kitchens/baths while we live in one unit.

That's pretty low for a 3-BR - I'm seeing the FMR for a 3BR in that zip code is $1,850.But at $1,300 for rent, you'll probably find HMLs that may lend you around $120k if you have a good credit score in my opinion, which means you'll need $45k + closing costs.

Quote from @Stacy Raskin: When doing a cash out refinance, it's important to consider seasoning periods of the waiting period you have to have between when the old transaction closed on the hard money loan to the new cash out transaction closing.