That will stop most wholesalers from calling when it appears you have no equity in your home. 

Even after one year, that property may provide thousands of dollars worth of appreciation, you will pay down your loan and build some equity, and you can depreciate the asset. 

My wife and I have a vacant lot in Tallahassee and we're looking to use the current equity to exchange for a larger single family investment property.

I don't know, it sounds kind of weird but my friend is kind of freaking out about potential liability since the lien was literally placed on the house essentially hours before closing. she needs to contact whoever wrote the title insurance.. the attorney is just an agent for the insurance carrier.. that should fast track.. this happens I have had it happen to me by crooks/criminals literally who put a mortgage on a property 15 minutes before my title company recorded my mortgage so when my title policy came out i was in second position not first position as my escrow instructions stated I needed to be .. 

Look for homes where strategic renovations will create the biggest equity boost.Leverage Hard Money Loans (HML) – Don’t let lack of capital hold you back.

Went on to purchase additional rentals so tenants can pay down the loan and I build equity How did you find this deal and how did you negotiate it?

I would highly recommend you listen to all the podcasts from Kenny Bedwell - Cashflow Positive.

It's an amazing market to be in because you can still find the 1% rule and positive cash flow while getting amazing appreciation potential.

I'm not sure why one would choose to make an (active) investment that is break-even, when there are other (passive) opportunities for RE ownership that can produce cash flows - i.e. private equity/syndications. 

I don't think your first property needs to be perfect, but doing the work in advance gives you the possibility of refi (in a good rate environment) or more equity on a HELOC.