I am posting this because I want to thank Josh for creating such a valuable resource for all of us that it enabled me, in Arizona, to find an investment partner from around the world.

Each type of asset has its advantages and weaknesses, and having a mix enables the savvy investor to capitalize on each asset class's strengths and to diversify risk. 

The refi won't be paying back any loan, but to simply extract all the cash we are providing.  

Your mindset sounds perfect;  setting up the long term plan in the back of your head, while you work on the short term every day:  finding a good job that will help you to qualify for the investments that will enable the long term investment plan.  

This is if (1) the financing is conventional (2) the borrower has good credit (3) the debt coverage ratio is at least 1.2 Utilizing private financing, the borrower may be able to come to the table with as little as 10% if (1) he has experience, knowledge, and a good reputation (2) the property net income is able to service the debt (3) he can convince the seller to carry back a small second lien.There are numerous strategies and techniques out there theoretically enabling the buyer to buy a property with no capital contribution on his part.  

The CAP rate is just a simple ratio to ideally enable a buyer to compare the cost of similar cash flows within a specific local area.  

It enables him to keep living there for free.

I am going to be really fast about this and I want to believe you done or have an independent party perform due diligence on the property to give you an unbias opinion about the property to enable you make an informed investment decisions, this step is very essential to real estate investing success. 

Hello @Mario Fernandez,The goal of real estate investing is to achieve financial independence, which enables you to break free from your daily job and take control of your life.

Again, get with people that have had positive experience working with a variety of lenders that could enable you to choose one that best fit your needs and financial situation.