In my situation, it was better to cash out re-fi becuase it gave me a much better interest rate.

That is exactly what I am thinking, to re-fi out of the VA loan there.

My GOAL ONCE I GET THIS IS TO RENT THE TOO FLOORS AnD LIVE IN BASEMENT UNTILL I HAvE ENOUGH TI GET ANOTHER Investment property2BEEDROOM 2NDFLOOR RENT -1700 2BEEDROOM 1ST FLOOR RENT-1700BASEMT - (1 BEDROOM) - 1200TOTAL 4600EXIT - WOULD TO Re-FI TO Conventional LOANWHAT SHOULD I KNOW ABOUT REFI TO Conventional LOAN IS IT ANOTHER OROCESS?

Semper Fi @Gregory Schwartz,I no lie have @David Greene's book sitting right in front of me and, I was also looking into the Huntsville market after listening to a different BP episode where a fellow servicemen was the guess and mentioned the market there.

I am currently a college student getting started on the path to FI early through Real Estate!

Traditionally banks loan on appraised or purchase, whichever is lower...you may be describing a hard money lender...that's a different ballgame altogether...It's impossible (in 99.999%) of all real estate acquisitions to use financing and acquire a property with no money out of pocket...best you could do is HML if you're flipping this...you may scrape by with points and fees...If you're using HML you will have to sell the property or settle the debt with a re-finance...re-fi's are typically 70% LTV...and completely dependent upon your personal financial situation, DTI...easy to get burned if you don't have capacity or the value is not there...and this is an expensive asset.A conventional lender can't lend if seller financing is involved...lending constraints...

@Jill F. I

You don't need to re-fi out of the FHA.

@Larry F., I agree with you on the PMs being local.

As to renting, the current financial model from a re-fi some years ago provides a negative cash flow.