I am pretty new to Real Estate Business and I'm currently taking Success Academy course. I'm also reading Dean's new book to learn how other successful investors made profits.
If anyone is kind enough to give me some opinions, advices, suggestions or even warnings, I would really appreciate it.
Today, I have found a 4br/2ba house for auction and current bid is $50,000. I believe this property is bank-owned. Based on my research, an agent is selling the house for $100,000 and FMV is almost $300,000!!! Now, I'm not going to buy it cash.
Let's say I have to pay the max bid of $100,000 and finance 100%. After making some repairs, refinance the house for $200,000 if it's worth $300,000. Then rent it out for positive cash flow. In this scenario, would I get $100,000 cash from the bank once refinancing is done? Would I also walk away from the deal with $100,000 equity on the property?
I don't believe those things are not that simple but trying to make the recipe as simple as possible because this could be my first deal.
Plz feel free to post any comments so I and other DG family can learn. Thanks!!