@Guillermo PerezPositives:- Equity Built: You now have $70K in equity, which is a solid result for your first deal.Cash Flow Potential: If the property rents well and covers your debt service while providing some cash flow, that’s a win.- Experience: You’ve successfully navigated a purchase, rehab, and refinance, which are the core components of BRRRR.Considerations: - Budget Overrun: Being $27K over budget highlights the importance of tighter cost estimates and contingencies.

Everything in the article makes total sense...wealth building helps through appreciation and debt paydown over time.It makes sense that chicago suburbs with strong school districts perform the best. 

Quote from @Kevin Sobilo:Monthly Rent + Monthly Debt Payments <= Gross MONTHLY Rent * 45% Obviously I made a typo.

There are a bunch of ways to do this depending on the property type, usage, and you (income and credit scores).If this is a primary residence, you can get up to 90% of the value of your home minus any exisitng debt. 

So he needs to be more ITM than  the 1.25:1 ratio.With that said, to answer the question-- figure out your debt or income.

The PPM and Docs are customized for your project so you will need to have it outlined upfront on the structure and payout (is it pref equity, debt and the capital stack etc).

Don't get me started on the national debt and the amount we pay in interest each year.

That will have a much larger impact on your outcome versus the debt product. 

I've done a lot of DTS marketing and found that almost all my leads were either tire kickers or if they actually wanted to sell, the property had so many entanglements (multiple family members involved, tons of debt on it, municipal liens, etc.) it wouldn't even be worth it.

You divide that $20k by .075 and you get a boost of $260k to the valuation.Allowing you to take the property back to the bank, get a new loan with $208k of additional debt on the property, pay yourself back that investment and now you have enough cash to buy a $1M deal and use that strategy over and over while scaling exponentially.