You will face higher payments though because of Principal Insurance and because investment loans have higher interest than residential.

Jestyn Shoyoola is the Principal co-founders of JA Home Solutions LLC, a Randolph-area based real estate Investment Company focused on single family renovations, condo conversions, and new construction homes.Jestyn has been in business in Massachusetts for 1 year, Jestyn hold a Master’s in Project Management, BSc in Construction Management and a Diploma in Architecture.

I spoke to a lender about the no seasonings cash out refinance and here is what I was offered: 4.75% 30 yr fixed  possible loan 105,000, principal and interest and tax $700.Is this a good deal?

If all goes as planned, I will be purchasing my principal residence in 2017, and investment #1 will come ~12 months later.

I'm having $950 going towards principal every month, along with cash flowing $500/mo.

I have an existing mortgage on the bldg which has $195k remaining on principal; only about $15k remaining from insurance money.

Does anybody alternate between buy and hold, then flip a house to make a large payment towards principal on their buy and holds?

It's correct that you subtract debt service, but you have to remember to add back the principal paydown at the sale. 

Many Thanks  If PP=   $    220,000.00 Purchase Price  $ 220,000.00 Downpayment $50,000 Interest Rate 4% Term 360 Loan Amount  $  170,000.00 LTV 77% Monthly    $ 1,279.72 Principal  $ 472.22 Interest  $ 566.67 Tax  $ 170.00 Insurance  $ 70.83 MIP  $    -   Net Rent After Mortgage    $ 1,436.94 Less Utilities, Trash  $(200.00) Less Advertising  $(50.00) Less PM Fee  $ (271.67) Less Rental Tax  $(385.00) Less Cleaning  $(100.00) Total Rental Fees  $(1,006.67) Net Cash Flow    $   430.28 Less Distribution   $ (43.03) Initial Outlay  $ 50,000.00 Rent Ready 1  $ 10,000.00 2nd Investor  $ (10,000.00) Total Outlay   $  50,000.00 Rate of Return Target 20% 16% Annual ROR Amount  $   10,000.00  $      7,907.00 Over/under    $  (2,093.00)

Nothing else matters.On a side note, you can factor your principal reduction into your ROE and projected appreciation as well.