@Nick Wing  Kevin is a New InvestorTaking on a Hard Money Loan even its its a sweet deal is risky.  

I own multifamily properties and it's difficult enough finding solid deals in what I consider to be my sweet spot.

@Andrew Bosworth Right now we picked up our first a few weeks back in the the Harrisburg area, it's a single family residence, we are mostly interested in multifamily units but this one just kind of fell into place for us and we didn't want to get stuck in that "waiting for the perfect deal" mindset and this was actually a really sweet deal.

I think the sweet spot is to shoot for a B-ish property in a solid C neighborhood.

I know a lot of people don't care about comps, and valuate properties based on cashflow, but I know a lot of people also rely on comps.Bascially, short and sweet, based on cashflow the property beats pretty much everything on the market in that price range, but the property costs more than pretty much anything sold within 2 miles in the last year, and is priced very high per square foot.

  :)   It may take some time to find the sweet spots.

I found that I had to adjust the base price for a couple months in the beginning to find my sweet spot, and then every 3-6 months I make a small adjustment.

The cash flow is yours to do with what you please ... just saying you can use the cash out refinance as a mechanism for managing that cash flow and keep it in the "sweet spot" where you show a loss on paper after subtracting the depreciation expense, but you still put some money in your pocket (or redeployed wherever else) every month before depreciation.

Also if you are getting a super sweet deal, some hard money guys will allow you to make the acquisition with no money out of pocket.

Sweet, thanks for the heads up!