Hi all,I am new to BP and just starting to research how to start becoming a buy and hold investor under extremely limiting circumstances and was hoping the BP community could shed some light on the best financing strategy to use for my first few properties.Current Financial SituationA little background on my current situation: I am 28yrs old working in television in NY ( making roughly 55-60k a year- yes it is brutal) I just bought my first primary home 2 years ago in Williamsburg, BK to lock in how much I’m paying for housing year over year in a place where incomes don’t increase as fast as rental prices (2 bd for 340k (this is an HDFC which is how I got a home for this price in an area where the median price is 1.5 million) ) so obviously my DTI is extremely high at almost 60% with no other debts besides my primary home (I also have a roommate who pays me $900 a month for her room which helps with about half my total monthly housing costs) (had a great mortgage broker that really helped me wiggle in to my first home)I now have about 75-80k in equity in the home and access to a family trust with a similar amount of money in it and was looking for the best way to turn buying an initial first property all cash into the ability to buy more properties( out of state of course- looking at different areas in the country from PA to TX to TN to FL).

I know we gained about $10,000 in equity in about 3 months just from the market going up.

Is it possible to refi into the LLC with $10k cash out leaving $20k in equity in the property?

There could be related party issues as well.Seems the trick would be converting the note (could have deferred payments) to the S-Corp to increase value.Without getting other entities involved, lending your money with interest income won't get to capital gains treatment.Probably the easiest way is to have him share in title and not make this a lending issue, you can devise a lot of strategies inside an operating agreement in an LLC and again, having a S-Corp as a member.Back on notes, I'm not a fan of sitting on the fence with one foot in equity and the other as a lender.

You will see lower cash flow in Martinez / Columbia but you will have the greatest opportunity for seeing gains in equity when the market fully restores.

The site is still a work in progress (I just have "portfolio" view now, but working on individual property views), but since the discussion came up...Real Life RentalsI also have some "non-turnkeys" for which I'm tracking the same way.To answer your question, the results look great for one property (built in equity and high cash flow, over 20% cash on cash return) and bad for another (no built in equity and major repair killing cash flow, negative return).  

Rent it out and over 1 year or 2 when it gets close to stage 4 selling the last few homes there is usually some nice built in equity spread.If you are buying an existing home at 1% rent to sale ratio and holding try finding an under valued property in a nicer area where at least rent growth should be stronger with a good mix of appreciation.

I have a home that I purchased in 2011 and now it has 185K in equity and I would like to turn my PR into a rental.

Here are the key considerations:Pros:Potential for Profit - Through the value add component you can increase profitability on your return, typically you're buying distressed homes with built in equity, rehabbing and increasing your equitable position furthermore. 

So while you might choose to invest in debt, which has no appreciation, or you can also choose to invest in equity which does.On one hand it sounds to me like you are staying that to tolerate any loss of your money.