It’s important to balance cash-out refinance with maintaining healthy cash flow from rent.Mismanaging the Rehab Process:Delays in the rehab phase can eat into your profits.

Wondering if there is a way to move him out, take over the payments, rehab, list, and do some sort of profit share at the end of sale.

This is neither good nor bad; and many times can be profitable if they are a legitimate wholesaler with a real track record of wholesaling.

Whether you decide to rent your current home and move or buy an investment property to rent or flip, having the right financing strategy will be key to making sure your deals are profitable and sustainable.Here are a few loan options that might help based on your strategy:DSCR Loans (Debt Service Coverage Ratio) – If you're looking to buy a rental property, this could be a great option.

A boiler building will operate less profitably than a furnace building.

One or two “mistakes” can wipe out lots of profits.  

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Investors who invest for capital appreciation find it more profitable to invest in these markets due to the low cap rates.There also may be a higher barrier to enter for investors who are not well capitalized.Gino

Sold at a profit.

And with more renovations, you will start to get better at ball parking things, but even then you will always uncover items, so make sure you are baking in enough profit, even after conservative renovation budgets to feel confident you won't lose money.