Quote from @Dylan Webb: Hello, here's my situation:My wife and I own several properties separately.2 of the single family homes combined we have conservatively $150,000 in equity ($90,000, $60,000) I want to use one of these as collateral for a small loan of $30,000 to put down on a high cash flowing property OR have a lender finance the whole venture at a purchase price of $160,000.

What does everyone think is the most profitable area to purchase in?

Great questions - a lot of our borrowers will tap the equity using a refinance in order to purchase their next investment property.Feel free to give me a shout anytime, happy to help!

We have some capital and are looking to possibly purchase a small hotel.

I just finished The Book On Rental Property Investing by Brandon Turner, and it made me even more excited and determined about getting into this business.

What's the purchase price? 

Reno Scenerio Off Market Purchase Price - $185k ARV = $315-335kReno - $55-65kHolding - $10kClosing both ends - $25k= $335 , $315-$285 =$30-50k gain  As-IS Scenario Purchase - $185kSale Price on MLS :$225- $235kClosing both ends - $20kHolding - $4k= $235 - $209 =$16-$26k gainIn both scenerios I’ll be 1031ing it into a new investment.

Are you wanting to purchase in the same area of Chicago?

Gain is your net sales price minus your adjusted cost basis (purchase price plus capital improvements minus depreciation). 

Purchase price: $74,000 Cash invested: $25,000 Sale price: $145,000 I acquired a property from a couple needing to relocate, with significant repairs required.