David Wright with Atlantic Union Bank teaches investor seminars in our market about how to buy the most number of properties with the least amount of cash using government backed loans. 

Having that cash flow upfront means you can reinvest it/leverage it for better returns.  

What I’m hoping to do is to pull some of that equity out to buy more, but a cash out refi on any property puts it into the negative cash flow situation since my current rates are mostly 5.5% or lower.

Purchase price: $25,000 Cash invested: $11,000 Sale price: $62,000 Contributors: Peter Vekselman Partner Driven, in collaboration with Joslyn Lukestich-Lewis, successfully completed a fix-and-flip on Curran St, Burlington, IA 52601.

You recognize it is cash flow negative. 

Hi, we have equity in a duplex rental and I’m trying to figure out how we can use some of that cash to rehab another property.  

Thank you in advance.Also as far as what I put in the letter, I usually say that me and my partner are looking for properties that need work, and can pay cash and offer quick closing.

I would highlight this for other investors about keeping reserves and if values start to soften this is a perfect example of what can go wrong when you are over leveraged and don’t have cash.

NEGATIVE cash flow. 

Purchase price: $195,000 Cash invested: $52,000 Sale price: $317,900 Contributors: Peter Vekselman Partner Driven, in collaboration with Jason Arguelles, successfully completed a fix-and-flip on St.