It is simpler and possibly faster to scale.

Consult a real estate CPA or tax attorney to assess if the benefits outweigh the fees and risks for your situation, and consider alternatives like 1031 exchanges or installment sales for simpler strategies.This post does not create a CPA-Client relationship.

Tonight I just watched a video called the Flipster promoting the same software only called something similar to the other programs using his proof of funds letter with his company logo and it is based around the same concept.

For simplicity, I've assumed no principal paydown on the original $300,000 mortgage.After two years: $400,000 × (1 + 8%)^2 × 75% - $300,000 ≈ $49,920After three years: $400,000 × (1 + 8%)^3 × 75% - $300,000 ≈ $77,914After four years: $400,000 × (1 + 8%)^4 × 75% - $300,000 ≈ $108,147While the above example is oversimplified, the concept is valid.

Got a good grasp of the concept, with very little info on the step-by-step actions I can take.  

@Seth RoseI would look at the approach from a revenue mindset, not a discount mindset (which is where the BRRR concept was born).Firstly, I would like to point out that properties with great cash flow potential and deep equity positions aren't just floating around the MLS.

I know you mention $400,000+ multi-family properties - but the numbers below will work out the same regardless of price point - I just chose simpler numbers to make the calculations easier to follow:Example:  $100,000 house - $1,000/month rent, $100 taxes/month, $100 Insurance/month - 7% on Financing Cash Versus Financed:Cash:$100,000 invested

I understand the concept of it, but I have received plenty of decent off market deals from legitimate wholesalers.

This also leads owners to ASSUME simpler is better when it comes to management contracts.

@James Kerson check out companies already doing (or those that have tried) something similar/same in concept to what you're describing.