Bonus - the interest on the loan is tax deductible!

Stop reading if you want.2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”5) It’s okay to pay an appraiser directly.

The refinance step is where you pull out this equity, typically in the form of a cash-out refinance.Here’s how it works:You refinance the property at its new appraised value (after rehab and renting).You take out a new loan based on that increased value, ideally for the full amount or more than what you originally paid for the property.The goal is to pull out enough money to cover the cost of the original purchase and rehab (or even more, depending on the property’s appreciation).This allows you to recover your initial investment, which can then be used to buy your next property.5.

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

The problem was, they only had enough money for a 3.5% down payment and an FHA loan.

Or put in your interest rate here, and your loan balance there.The art is where I think most people struggle, and I don't think this can really be done without real world knowledge.  

You could likely get into a rental with a DSCR loan at 20% down, which would be similar or less in terms of DP on an owner occupied loan via conventional financing in eastern MA. 

At the refinance, I am able to get a loan for $180,000 and $20,000 of the money partner's money stays in the deal.

@Ryan Daulton,You don't have to buy a house in SDIRA without a loan; you can easily get a loan, but it must be non-recourse.

@Patrick Roberts & @Tim Delaney- which lenders/ loan types are good for 80%?