When buying a property, in my market, I need to be in it at no more than 70% including purchase, rehab and closing costs.
Fix it up, re-finance it at 75% to 85% loan to value, and pull out the cash, which by the way is Tax Free cash, as you don’t pay tax on borrowed money. Then you can rent the property out at a positive cash flow and have Tax Free cash in your pocket.

Now here is a game plan that I suggest that you would do with that money.
First of all, every time you buy a property, I want you to look at that property in the sense of what bill can I pay off with this property? If I have outstanding credit cards, a car payment, student loans, even a home mortgage; what bill can I pay off with this house?
You are looking at the house, running the numbers, hopefully buying it a 70% or less, fixing it up, re-financing the property and pulling out $5,000, $10,000, $15,000 tax free cash; then you are going to pay off a bill.
Let me just give you a quick example.
If you bought a property and after you […]

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