Cash out should be used as a 12-24 month loan so that you can buy another property and pull cash out at the next 12th or 24th month mark.At that point you take a portion to pay off or down the first loan and use the rest as a down payment on the next REI.

I they accepted an offer of $118K from my brother but since he couldn't get the loan, we're starting over.

Just to name a few: Borrower's Experience FICO Loan Amount Loan Type being sought: Perm (30 yr ams), Bridge (12-36mo I/O), Rehab (12-36mo I/O), Ground Up (12-60mo I/O) Property Type (1-4 unit, 5+ MF, Warehouse/industrial, Hospitality etc)If you have a specific deal in mind, then you can have a lender (or broker) look at it and give you a better idea.

I currently work with investors who are looking to begin their portfolio in turn-key real estate and manage for them on the back end so they can still enjoy their everyday lives while having a resident in place paying down their loans. 

We do not factor in capital gains tax in our final net profit projection Hope that helps!  

Most mortgage companies will not call loan due if payments are current but you do run that risk and need to be prepared to payoff or refi at a moments notice.

This way, they get the cash they need without selling and without triggering any taxes since loans aren’t considered taxable income.

I think your goal of getting your first RE investment for around $50k is doable as long as you plan to leverage debt (Loan). 

My duplex - built 1989, 2,060 sf, 2 bed/bath, 1 year old roof, value if I subdivide (county already approved) and sell each separately $150k each ($300k total)Investor duplex - built 1995, 2,300 sf, 2 bed/bath, 5 year old roof, value around $310kThe investors initial request was for an equal trade and they would pay realtor fees, which I replied wouldn't be equal due to buying/selling costs (recording fees, title insurance, closing fee, survey, inspections, loan fees, 1031 fees, accountant fees, repairs), taxes would increase due to new sale price, I'd trade a 3.75% mortgage for a higher one, and I'm on the 10th year of a 30 year loan so resetting that to a new loan would restart amortization and pay more towards interest.

You can also see total loan exposure, every loan ever pulled, every property ever owed, every co-signing partner from every project, permits, etc...