From what I read, you must pay all the interest on a 20-year loan ($1,000,000 x 5% x 20 = $1,000,000) even if you sell the property or refinance next year?

@Amy HatcherIm from SD as well and started OOS this yr.Here’s how I found my team:Lender: knew a loan officer from previous refinances of my primary.

You can refinance in his name to conventional cash out IF he can qualify.

The first house we bought almost 20 years ago, we have rehabbed it, rented it and now are about to refinance. 

If you could find two flip-and-hold properties a year that met even a 90% cash-out refinance metric, you could build a portfolio of a dozen rentals before you even had to think about where to access more capital.That might be a slower strategy than you hope for, but if you did it that way, you'd definitely have a stable, productive portfolio that would spin off a fair amount of cash-flow.

A cash-out refinance may also be an option, but I am worried about raising the mortgage payment.I thought I would post here to get some input from the community.

Should I do a cash out refinance?

I would want to rent the property out, refinance the property, and pull out my cash as fast as possible so I can move on to another project.

I'm in the process of identifying my offer to private lenders, so my question has 2 parts, 1) Do you think my offer is enticing for passive investors, and 2) What type of clause should be in the agreement if the refinance doesn't fully recoup the initial investment?

Plans are now to refinance out and start saving for the next deal.