So all in I am at $240,300 , hard money I am factoring in as 15% rate and since I’m borrowing 840k for let’s say 6 months , I’m factoring in hard money costs at 63k for 6 months So now all in I’m at $303,300 ARV should be at least $1.3 million (conservatively) I would cash out refi with a dscr loan and get back 975k , I would pay the $840k I owe to the hard money lenders , leaving me with 135k , and I would pay myself back with that money , and since I would have $303,300 invested , I would pay back 135k to myself leaving me with $168k invested in the house with a equity position of $325k , the actual house number are such after the cash out refinance: This house has 2 units and 3 accessory units Mortgage : $7100Heloc payment : $1300Total = $8400Live in 1st floor Rental income 2nd floor : $30003rd floor: $1500Accessory unit 1 :1200Accessory unit 2 $1200Income : $6900 Net : negative $1200I also already have a house that’s breaking even , but I’m living in one unit and if I move out that house would become positive $1500 which I can put toward the payment of one of the other houses .

Hey Bob, which market are you looking to purchase in? I

If none, NY and NJ are not the best spot to "try" one as your buy-in is very high, cost is high, lag time is long, and competition is fierce.

Depends on the type of properties you want to invest in. I

@Luis Herna, I don't mean to imply that finding a property worth investing in is easy, but it is far harder to raise capital than it is to find a property to buy.  

I am new to real estate investing, but are ready to dive in. I

Cash flow is what recovers your costs because your cost (cash in) is immediate. 

The area I purchased in is great but I know condos valuations fluctuate more then other residential properties. 

Unfortunately the things that Lonnie did back in his day were great money makers but have been all but made obsolete in this under the microscope predatory lending world that we live in. I

If property values go down that money you just paid in is disappearing!