From what you’ve described, it sounds like you’re more focused on long-term appreciation and future benefits rather than immediate cash flow.

Was that purchase money, rate and term refi, or cash out refi?

Purchase price: $105,000 Cash invested: $90,000 Property needed some serious rehab, from trees roots destroying the basement walls, to plumbing, electrical, to roofing, landscape.

Is it still not recommended to invest in this negative cash flow property. 

Additonally investor buyers use matrix like cash flow to determine value. 

Purchase price: $600,000 Cash invested: $30,000 Purchased single family home, finished basement making the property a duplex.

Purchase price: $275,000 Cash invested: $275,000About this homeBeautiful 2 bedrooms 1 bathroom condo in the convenient location of Rowland Heights, close to bus stop, supermarket, schools, shopping centers etc. newer counter top in kitchen and bathroom. 2 parking spaces and storage room.

Despite all the challenges and total *****how unfolding, I will say that I do believe Jorge is genuine and really wants to successfully get through all this. 

My plan is to buy the house subject to their existing mortgage, renovate the property, refinance it and pay off their remaining loan balance using the money from the cash out refinance.

Always smart to see the bigger picture and future cash flow potential!