Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The reason being if you show them those reserves and the deal goes bad, they are gonna come after you for that $ and that will put you in a really bad position.

@Don KonipolExactlyIt makes zero sense to pay down a 3% mortgage and have that equity be illiquid OR pay 8% interest on that untapped equity

For instance, you could look into refinancing the property to access some of its equity while still maintaining ownership and cash flow.

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As a beginner investor based in the Seattle metro area, I'm eager to learn from your experiences and share my journey as I get started in this field.My current strategy is to focus on live-and-flip for the first three deals (looking for my second deal) to gain hands-on experience while building equity and learning the ins and outs of renovation and the local market. 

So there's a lot of positives I'm seeing from my research.

Use the 20K as a down payment on the next house hack and don't touch your current properties equity.

House hacking can be an excellent way to get started, especially for those looking to build equity while keeping living expenses low.