Then I save that amount each month in reserves until I need them.

Cash Flow Potential: Rental income from real estate held in an SDIRA flows directly back into the account, allowing you to reinvest and compound your wealth tax-advantaged.

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.

I have done a handful of flips using cash, partnering with friends, and making it work. 

The particulars of a project, whether fix & flip (cash now), fix & hold (cash flow), rehab & reboot (cash out), is only one of many ways lenders decide whether to invest or not.

One thing you don't want to do is to buy based on proforma and have a negative cash flow property, especially on your first deal.

So basically in my mind this would not be a great financial move as we be accruing about 200k more in debt if we were to sell one house and take the cash from there and use it as a down payment.

Hey everybody We own 8 rentals in Philly, we are looking to pull some cash out or get a HELOC in order to continue scaling.

However, most of these properties still cash flow well (or enough to cover PITI). 

Eliminate debt, establish a budget, and save.