In 2015, I had 36 pure equity investments outstanding and its cash on cash yield was 10.1%.

Partial 1031 Exchange transactions are perfectly okay and are done for many strategic reasons, including, using of loss carry forwards, creating a cash position, reducing outstanding debt obligations, and taking some money off the table for any variety of reasons.

@Hadar Orkibi I've actually had a hard time matching the numbers here that I got in Memphis using an outstanding turnkey provider.

You'll need to owner-occupy for at least a year, and I believe you can't have more than one FHA loan outstanding with an LTV of 75% or greater.

Welcome to BP, the community here is outstanding!  

Assuming a 5% yearly increase in value (which may be conservative), in 10 years time, the value of the house should be $1.25M with an outstanding balance of $174k, i.e. equity of $1.075M.

The owner has cured the amount outstanding and the loan as been reinstated - - happens all the time, especially in high FMV properties with low loan balances.

In other words, if there was a foreclosure and the property sold for less than the total of all the outstanding liens, first the 1st lien would be paid in full, then any leftover funds would go, in order, to the remaining liens. 

Whatever the outstanding equity is, you (ideally) use the rents from the Duplex/Triplex to pay the mortgage.

Also some things to consider are any other outstanding liens on the property.