Aaron, your strategy of leveraging equity through refinancing to pull out tax-free cash while maintaining cash flow makes a lot of sense, especially with the stability of W-2 income.

I would continue to put offers out, continue sending letters, doing calls and networking. 3,000 letters with a 2% response rate is not bad but you have to do volume with letters, most people that do that strategy are sending out a ton of letters.

I believe he bought it with approximately $50k as a down payment.

With these changes, the property now generates $1,930 in rental income while continuing to appreciate in value.

Long-term rentals are a solid choice, but mid-term rentals in medical hubs (like yours) can offer strong cash flow with less turnover. 

Purchase price: $28,500 Cash invested: $178,000 Sale price: $250,000 Bought a 3 unit riddled with drugs or prostitutes from the city at the tax auction, spent a year gutting and consolidating all three units in two structures to a single-family home with an exterior side entry garage.

Then look at places where you can buy those properties, and last investigate with HUD what is the section 8 rental in those areas.In that way, you will collect a lot of knowledge in the process.

A portfolio of six buildings came across my desk today that has good numbers - 15.5K gross rent for ~1.1M with lots of upside to increase rents.  

Other types of sellers that are making deals easier to get done are those with assumable debt available, and sellers with the ability to seller finance there properties.

gothca there should be a brokerage with with a flat annual fee..