They’re a great way to generate passive income with minimal hands-on involvement.Looking forward to hearing more about your goals!

How much weight do you give to the cash flow benefit of cheap debt when the property is priced above market?

You’re probably thinking you have to offer asking price – not true!

Fortunately, I was able to acquire both properties at a good price on seller financing.

Monthly rent = to 2% of the price.

Every loan and bank will have its associated fees and cost as its the price to do business but if you see more leverage in tapping into existing equity that could very well be the case.

Hello Dana, For that purchase price in Brooklyn, NY, you could be looking at considerable unknown expenses at this point.If the property is occupied, you'll have to factor in attorney fees and holding costs while you wait to gain access to the property.Furthermore, you could be facing additional costs related to title issues: open permits, violations, liens, judgements, etc.

Quote from @Dylan Webb: Hello, here's my situation:My wife and I own several properties separately.2 of the single family homes combined we have conservatively $150,000 in equity ($90,000, $60,000) I want to use one of these as collateral for a small loan of $30,000 to put down on a high cash flowing property OR have a lender finance the whole venture at a purchase price of $160,000.

While it seems like there are some better priced deals lately, you may have to be prepared to put down 30-40% down.I'd say due to the lack of homes for sale, you should be open to many if not most cities depending on the deal that comes up. 

You can't beat the price, either, or the interest rate on deposits.