@Jason Rutledge - The way you kill bamboo is to cut it, and inject the new green sprouts with roundup with a syringe.

I just question the viability for a buy-and-rent portfolio.You can inject a lot more profit into the deals if he is willing to act as a credit partner to secure bank financing, then you'll have some significant profits to divvy up.Of course, with you in St.

This is best before making big capital injections. 400 X 8 = 3,200 X 12 = 38,400 gross expected annual 38,400 X .40 (60% costs) = 15,360 NOI 15,360 NOI at a 9 cap is 170,000 purchase price.

You need to maintain some cash reserves to inject into the deal at time of refinance, if necessary due to the potential for a lower than expected appraisal (perhaps be ready to absorb a 10% haircut from the expected appraisal).

If you raise capital and inject into the project, you are an owner.

We're talking about the conversion of liquid currency to a hard asset, and then the conversion of a hard asset to a better hard asset via infusion of liquid currency, followed by the reconversion of that hard asset to a greater amount of currency than was injected into that hard asset over the course of purchase and ownership)

It's about how much value you create and inject into the economy.

I do not have any intentions of paying off the HELOC until I sell the property, or get an injection of Capital from another source.Step 4.

Once you get this info I would take that annualized for this equation:Annual cash flow / total cash injected at the beginning of the project or MHP = cash on cash return.Does that sound correct?

In doing so I can pull out nearly all of the injected cash if I choose as the appraisal came in at 105k before repairs and comps three doors down on either side have sold for 117,000 and one on the market now at 123k.