Most “Gurus”, authors, advisors and experienced real estate investors preach obtaining seller “carry back” financing for property buyers in order to (1) obtain financing when they don’t qualify for a 3rd party loan (2) obtain financing when the property doesn’t qualify for financing and or (3) extend the “buying power” of their capital contribution (down payment) to purchase a larger more expensive property by having the seller provide a subordinated mortgage loan.That’s all and good, but why should the seller agree to finance the purchase of his property, instead of getting CASH for his equity?

Cash out refi: When you cash out refi the property, the BOR will most likely increase the tax to match your appraised value.

If you are buying sight unseen with cash, there are nonrefundable downpayments you have to watch out for.

Purchase price: $145,000 Cash invested: $8,000 This 2 bedroom Condo with a garage was fully renovated by the owners before moving into a house and holding it for a rental since 2001.

What are the numbers and why does it not cash-flow more?

Purchase price: $204,000 Cash invested: $30,000 This deal was an almost brand new construction in an up and coming area on the outskirts of Houston, TX.

Purchase price: $34,700,000 Cash invested: $7,500,000 192-unit institutional class B+ property located in between the Research Triangle Park area and Greensboro, NC.

Hey Bans,  the ARM seems like a great option for the increased cash flow in the short term and interest savings for the 5 year period.

Hey all,I’m a private money lender and a hard money broker and I’m interested in hearing from anyone who’s gone through cash-out refinancing.

You can get the STR data from something like AirDNA and then check out what your competitors offer on sites like Airbnb/VRBO.Negotiations will also depend on their cash flow and how much of the business you buy.