Too many people trying to get by on some combination of fake jobs, government subsidies and charity. 99% of all the problems these people face, including the homeless, would go away if they got off their duff and started working a real job.

You cannot finance more than what wouldve been available in the initial purchase or use any improved value or new appraisal to increase the loan amount. 

I was initially leaning toward BRRRR since the equity would give me a kickstart for that process.

Initial rent was $575 per side.

I would like to update my initial response.

Purchase price: $290,000 Cash invested: $100,000 Elizabeth Lake Property that was initial just a base hit property ended up being a huge win.

I’m especially interested in house hacking as my first investment since it seems ideal for building cash flow, reducing expenses and gaining experience without heavy initial capital.Questions & Market Focus:I'm still learning, but I’m starting to research these four markets to understand which may be the best fit for house hacking.

Hi,People always talk about how they purchase a rental property, wait a few years for it to appreciate, do a cashout refi to recoup their initial down payment, then whatever they earn in the future is infinite return.But in reality, how is this truly a "recouping of initial investment" when you have to pay a 4.5% interest to take out the cashout proceeds (with $3000-4000 of closing costs on top)?

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Initial Inspection and Assessment: Document property condition before work begins.