Just underwrite a refinance assuming about 30-36% of the money you will receive goes to refinance closing costs at worst, and find discounts when you can.

What you use is what you have to pay back.Cash-Out Refinance Cash-out refinance this gives you cash from the equity you have built up in your home.

-So currently own 7 units in central MA area, soon to be more after my next refinance in 2 months.- Now helping other investors achieve their goals, whether you are brand new or a well seasoned investor.How I Can Help: -Connecting investors with trusted contractors, lenders, attorneys, property managers etc.

So I guess one option could be to do a DSCR loan, Airbnb the property in full, and then in the future, refinance into a conventional when my DTI allows me to down the road.

Using mortgage debt at 6-7% on a refinance to pay off higher rate debt such as a credit card at 15-25% is a savings!

Is his capital only paid back when there is a "capital" event like a sale or refinance?

If you can rehab and refinance (BRRRR) to extract all investment and achieve neutral cash flow you would have infinite return (most of my RE investments have achieved infinite return but the cash neutral has in particular gotten a lot more challenging when the rates rose starting Q2 of 2022).Any money extracted via a refinance is tax deferred. 

With comps ranging from $875K-$1M and your estimated build cost at $550K, the after-completion value gives you a significant equity cushion, making this project highly attractive to lenders.If you plan to hold and rent the property, you could refinance into a DSCR loan after construction, which bases lending on rental income rather than personal income.

This works best when the seller is motivated and open to flexible terms.4.BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat)– If you find the right undervalued property, you can finance the rehab with short-term funding and then refinance into a long-term loan, pulling most or all of your money back out.5.House Hacking– If you’re open to living in your investment, you can use an FHA loan (as low as 3.5% down)to buy a multi-unit, live in one unit, and rent out the others.

They should do a cash out refinance or a HELOC when rates go down to tap the equity.