Show057: How We Took Out Over $33,000 of Cash From Our Rental & Have an Infinite ROI

 

Upcoming Workshop: How To Buy Your First Rental Property- Join Our Waiting List (Get a 10% Discount)

"Success doesn't come to you, you go to it."

-Marva Collins

Itunes

Today's show is sponsored by Lima One Capital, a lender for residential real estate investors.  They offer a 30 year fixed rate product with low rates, great customer service and no borrower debt-to-income ratios.  If you're looking to buy your first property or refinance your rental portfolio give them a call at 1-800-390-4212 or visit www.limaonecapital.com/rentalrookie.

$33,000 of Cash and an Infinite ROI

 

Being an investor is a lot like being a teacher; you need to have many strategies in your investing 'toolbox'.  If you do, then you will be able to get creative with the way that you buy, manage and liquidate properties. Today's show focuses on one of the strategies we recently used that enabled us to take out over $33,000 from one of our properties.  

As a result of this cash out, we know own the property with none of our own money invested in the property.  Which means our ROI (return on investment) is infinite.

 

The cash out refinance strategy is one that can be used in multiple avenues of real estate investing, but can be extremely beneficial in the rental property niche.  By buying a property below market value and forcing some appreciation into the value along with the regular market appreciation, you can go back and refinance equity cash out of your property.

That money can be used to buy another property, pay off a property or invest in another avenue.  Either way, this strategy can offer a lot of opportunity to the buy and hold investor.

We just used this strategy, for the second time, with one of our properties and were able to take out cash that we plan to reinvest into another property to continue to grow our portfolio.

 

In the show we discuss,

  • what a cash out refinance is
  • How a cash out refinance can save you from paying capital gains tax
  • why we chose this strategy for this property
  • the actual numbers before and after the refinance
  • how we renovated the property to help force appreciateion

Links Mentioned In the Show

Itunes

 

Upcoming Workshop:

How to Buy Your First Rental Property

 

Join our waiting list to be the first to know when our upcoming workshop goes live. Our workshop focuses on 'how to buy your first rental property' and is packed with awesome content.
Grab a spot on our waiting list to get a coupon for a discount on the workshop. Click here to get early access.

Leave A Response

* Denotes Required Field