Here’s the plan I’ve come up with, and I’d love to hear your thoughts on its feasibility, potential risks, and any improvements you might suggest.The Plan1.Pay Off Mortgage: I currently have $170K left on my mortgage, and my goal is to aggressively pay it off in the next 1.5 years.2.Establish Emergency Fund: Before making any big moves, I’ll set aside 6-12 months’ worth of expenses as an emergency fund.3.Extract Equity: Once the mortgage is paid off, I’ll pull out the equity from the property.4.First Flip: Using the extracted equity, I’ll purchase another house, fix it up, and sell it for a profit.5.Reinvest Flip Profits: Instead of buying another property immediately, I’ll use the profits from the flip to renovate the original property, aiming to increase its rental income and appraisal value.6.Reappraise and Extract Equity Again: After renovating, I’ll get the original property reappraised and extract additional equity based on its increased value.7.Purchase Rental Properties: With the additional equity, I’ll start purchasing rental properties that offer positive cash flow and have growth potential.8.Leverage Equity Strategically: I’ll use equity from the original property and any new properties while maintaining a healthy loan-to-value ratio (LTV), ideally around 70-75%.9.Build Rental Portfolio: I’ll focus on acquiring a mix of property types (e.g., single-family homes, multi-family units) to diversify my investments.10.Focus on Cash Flow: I’ll prioritize properties that generate consistent positive cash flow, ensuring that rental income covers all expenses, including mortgage payments, maintenance, and management fees.11.Long-Term Hold: I’ll hold properties long-term to benefit from appreciation and tax advantages.

Appraised value (can pull this from my realtor or just from internet searches) ($368k minus $68k land = ~$300k)Should I give the CPA the higher number ($300k) or the lower number ($200k) from my options?

If you hold it for 8-10 months you can start the application process and close on or after the 12th month.It makes very little sense to me to fix and flip a property if it cash flows and you have a good enough ARV to pull cash out and repeat the process. 

Hello Armando,I would evaluate my equity position and see if there was additional equity I could pull out of one of my rental properties.I would shoot for the Fix to Rent Strategy, I feel like it doesn't take a lot of effort to find a 70% or less property in the current market. 

Better areas/better assets are still pulling strong rental rates with quick turnover time between tenants. 

Pulling up to the property there was a lady in the house claiming she was a tenant and had a lease to the property.

If YOU were in this situation would you pull the trigger on this deal?  

The other suggestion would be to pull cash out of another property if you have equity primary home or other.  

Its a great tactic, which has not been as effective over the past 24 months due to the rise in interest rates but we still have had some success with it for borrowers who had high rates already but are looking to lower payments possibly or pull additional equity. 

I'd like to refinance into a DSCR loan and pull $35k cash out to payoff a HELOC that I used as down payment.