Even if it was cash flow positive at its current equity position, it will be cash flow negative when you refinance to a high LTV loan to extract money for your next purchase. 

@Jason Mak @Bill ExeterExample:Sell SFR with $120k profitBuy apartment complex with seller financing, put $60k down, get $60k back from seller at closing.I'm assuming (knowing nothing about the 1031 process) that this can't be done, since you're extracting profits... 

I've extracted the appropriate paragraph from the Texas Association of REALTORS Lease for your perusal. 

You should get to the point where extracting the very best return from your dollar is less important peace of mind, “lack of hassle”, and constancy of rent and occupation.

This way I can keep borrowing the cash and paying it back, borrowing the cash and then paying it back without having to refi the property every time I want to extract the equity from the home. 

Hi Everyone - In an effort to determine ARV on a potential fix and flip in an efficient manner, I've asked my r/e agents to send me data extracts from the MLS on the comps.

See if you can extract any sense of the direction of their moral compass with your conversation.2) If you aren't satisfied with the agent's response, find out who their managing broker is and have the same conversation with them.  3) If this person has no managing broker or you're not able to get anywhere with them, you can file an official complaint with the FL state board of Realtors.  

73% operating expenses is off the charts unless your friend is paying himself out a big salary and retirement etc.Age of the building and location will determine what CAP rate a buyer will pay among many other factors.If your friend owner finances a portion they may be able to extract a higher price.If they want a straight sale from a cash buyer the price will be lower.The scary part is your friend owns an 86 unit but does not know how to go about estimating value.I expect this with investors owning 4 to 10 units but not usually complexes that big.To purchase ones that big usually the owner has a very good grasp of cost and resale analysis.Investor buyers will look at value add with the property as well the current CAP rate going in and projected CAP rate later on.For an older building a 10% CAP is a good starting point to draw interest in many markets.That would put your friend at a sales price of 1,730,000 before resale costs.Really needs a commercial broker in the area that specializes in these types of property.

We are not taking a fee, we are extracting a spread out of the middle.

States can and do vary in the application and extraction of their own capital gains tax and recognition of sec. 1031.