Quote from @Dylan Webb: Hello, here's my situation:My wife and I own several properties separately.2 of the single family homes combined we have conservatively $150,000 in equity ($90,000, $60,000) I want to use one of these as collateral for a small loan of $30,000 to put down on a high cash flowing property OR have a lender finance the whole venture at a purchase price of $160,000.

For purchase price, use this formula,  (Arv * .70%)- Rehab = Purchase Price Good evening Dustin, I went onto the webpage for Arizona association of Realtors and I found the agreement for 2024, however I am not licensed so I do not have access to download the contract.

Meaning, if you take the money only, you would have depreciation recapture from your cost basis up to the original purchase price of the building (not including the land cost because it wasn't depreciable), plus a capital gain up to the insurance proceeds.Hope this makes sense. 

I went all in, I had a few 401K’s so I cashed in the one that was growing the slowest and took the penalty and purchased my first property.

We have some capital and are looking to possibly purchase a small hotel.

Are you wanting to purchase in the same area of Chicago?

@Wade Wisner -  Most of the notes that we purchase we keep in our portfolio and borrow against them with private capital.

The second is a rehab property that I purchased for myself, I purchased it out right for 100k.

I used a hard money loan to purchase this off market deal.I rehabbed the upper two units within two and a half weeks and have a renter already lined up for one unit.

Purchase price: $655,000 Cash invested: $40,000 Sale price: $770,000 Purchase and hold.