@Evan Polaski Thank you for this knowledge, I am definitely looking to shadow someone here in Houston, there's so much I want to learn about before I just jump in. I

All in, I believe the entire build will be ~$300,000 (I haven't tallied lately) but we've been able to keep it cheap because we're doing a lot of the interior finishes ourselves.

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

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

Depends on the type of properties you want to invest 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.

@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

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