If your goal is to have a cash flowing portfolio of rentals. 

Zero evictions and zero cash for keys.  

.🔹 Profit Multiple Ways – You can rent the property for cash flow, sell the option at a profit, or buy it later at a pre-agreed price (often below market value).🔹 Great for Sellers & Investors – Motivated sellers can turn a vacant or hard-to-sell property into income while investors secure future deals without a huge upfront commitment.🔹 Ideal in Any Market – Whether home prices are rising or falling, lease options allow you to lock in today’s price while benefiting from future appreciation.Other creative strategies—like seller financing, subject-to deals, and the BRRRR method—can also open doors, but lease options remain one of the most powerful, low-risk, minimal cash out-of-pocket ways to build a portfolio.

It is imperative to have a cash reserve for unforeseen circumstances, such as unanticipated maintenance or fluctuations in the market.

Jillian,You can solve two problems with just using a DSCR program to refinance pull cash out and then close in an LLC. 

. - When we've review these options with clients the ending outcome is typically that it's easier to forgo the 121 exclusion if you want to keep this property; and do a cash-out refinance (taking on more debt isn't taxable) instead. 

This property will lose money for anyone not paying cash, and if they are paying cash they will make a very low ROI. 

Purchase price: $325,000 Cash invested: $50,000 This time I acquired a property that needed little to no work.

Now granted if your experienced and paying cash and know your market.. that's one thing.. but the answer to the original question is   IT DEPENDS  LOL..  

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.