I told him that I’m underwriting the deal to income it produces.

Depends on various factors.But yes, if you have a rental property that is producing net passive income, you can invest on the property that has high appreciation potential but less cash flow.That way you can use the tax loss ( it might still have positive cash flow) to offset other passive income.This way, you can also tap into the equity of the appreciated house in few years and still enjoy the tax losses. 

@Jeff Kehl that's a good point, I was thinking of what the monthly rent will be when full, but not considering the timeline for when those units will be ready to produce it.

How easy is it to produce $1000 in cash flow from 100k cash invested in real estate?

So, back to the original question, what strategies or approaches have BP members used for securing private money lending for a down payment (knowing refinance will produce ability to pull out that down payment in equity in a short amount of time, to pay off private lenders quickly)?

I told the broker today about my concerns with the rent roll and he basically said that what he was able to produce for the OM took a ton of work to formulate the numbers to be what they are based off the scratch pads of accounting they the seller maintains and calls records lol.

I'd ask the broker to produce financial statements that are at least somewhat useful to you or have the the sellers pay for a CPA to do the books. 

Actual Terms of the existing loanActual RE TaxesActual Insurance Costs...so forth and so onI would venture a guess, that it would be challenging to find a rental that could produce this return, in the same time frame. 

A couple of those could produce some cash for solo ventures.

Is it a rental and if so, how much cash flow does it produce?