Your equity equals how much “cash” you would have left after paying all debt on the property, whether it a 1st or 2nd mortgage, a lien or a heloc doesn’t matter

Hi guys - would love any feedback on the below numbers I am crunching on a potential BRRRR deal.The plan is to hold on to the property, rehab it, rent it, and then do a cash-out refinance.

Setting up and maintaining an LLC comes with annual administrative costs, so another thing to consider is your cash flow.

What you are referring to is a  DSCR loan which the lending companies do provide, they do require decent down payment and it must have good cash flow.

Yes you can still find cash flow properties at this time.

Don't know anything about them but per my calculations they are taking 27.2% of the capital appreciation on the New Braunfels deal at the end per their projections which seem optimistic in this oversupplied environment, (Austin MSA with largest new multi-family projects coming out this year in the country ,8% of total existing stock and already seeing rent rate declines of near 10%in the city so far) and they are taking a big chunk of the monthly cash on cash as the preferred payouts for their 3 different classes are well below the projected cash on cash total.

Hey looking for multifamily 20k down cash flow 200 - 300k a month c class neighborhood high rent growth potential  

I'm hoping to do a cash-out refi as soon as possible to take the funds back out.

My question that I would like one to consider is this: Should I target a property that slightly cash flows with a 30 year fixed, or buy a home with a better rate 15 year fixed and target fast accumulating equity and a big fat cash flow egg that will be gifted to me in 15 years?

Even better, call it your personal residence but AirBnB your personal unit while you stay at home ;-) Of course, you need to find the right area that will have demand, but you'll be cash-flowing well and still have money in your pocket for reserves or the next opportunity.