Well let me see if i’m understanding everyone here. Gross rents divided by 2 = NOI. subtract 50-100 bucks for cashflow, the rest is left for payment on the house? So buying, fixing, re-finacing at say 80 LTV is most likely a big mistake because of the cashflow issuse, right? So then what is a person to do? Buy rehab all with the same loan money as not to have any more debt on the property than nessasary. Or buy rehab the only re-finance an amount that will allow you get get back your inital investment but not exceed that number that would be allowed for your payment? Thanks
So buying, fixing, re-finacing at say 80 LTV is most likely a big mistake because of the cashflow issuse, right? So then what is a person to do?
Buy at a bigger discount. If you refinance, don’t borrow so much that you destroy your cash flow.
Mike