Used funds to pay other debt off plus out cash in the side.  

So they price those homes at what a willing homeowner will pay for their personal residence.

Every where you turn there are STRs going up on the market fully furnished because they couldn't pay the mortgage and bills with the rental income. 

Using money from an appreciating asset just to pay your landlord doesn't seem like a good flow of money.

Kind of reminds me of some of the golf course communities out here where if you bought a lot you had to pay the 100k transfer fee for the membership and 1k a month dues..

BAM is consistently paying out monthly with Class A shares but class B shares stopped paying out almost immediately with the interest rate hikes.

The tried and true version is pulling a list of properties whether you're targeting distressed homes or high equity homes in which case you can pull on something like Propstream or Propwire, you can skip trace through them or someone like Prime Tracers which has a pay as you go system. 

Is it like you sold your house and don’t have to pay for the profit?

I decided to buy the property from my grandfather using a gift of equity, which allowed me to take over ownership without having to come up with the full down payment and pay for the tax lien and his closing costs.

We had success in summerlin with insurance company paying .. over a 24 month period we had 3 tenants   fair market rent at the time was about 2200 or so non furnished.. we got 4100.00I did not like the turnover so I put it up as furnished rental and got 3500 and its going into its second year with a superb tenant. so seems like a happy medium for us..