If you refinance the property now the loan would be $100K at 20% down and $80K would have gone to repay the original loan.First, if these are your numbers for rehab cost and after repair value, it is probably not a good deal to begin with and you shouldn't be doing it.

I think the math is off his cash flow from his numbers is more like 1800 a month.. not 780 he mentioned. . and the 700k equity will be whittled down with sales costs no doubt.

This should include down payment, closing costs, potential rehab costs, and a reserve for unexpected expenses.Market Research:Choose a Market: Decide on a market where you want to invest.

I'm invested in a property near the Grove that's executing that business plan now.At a simpler level, that might mean buying a house with a garage, converting the garage into an ADU, and renting out the ADU.I think a super solid first step to get into the LA market is to househack a home or a multifamily.

The business renting the storefront unit did a complete haul of the space to bring it up to codeWhat was the outcome?

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

In order to make a decision on keep vs sell it comes down to holding costs, repair costs, total all in costs and projected ARV and rents.

My policy is business before people.

Sounds like a business opportunity,  once you learn Yardi, remember this, and you can have a side business teaching it.

if it’s an investment property and it’s the right property with about 20% down, you could get a lender to finance the 80% and the construction costs.