At closing:The homeowner deeds the property to the straw borrower, relying on the false promises made by the ‘investor’All proceeds are used to pay off the defaulted loanThe homeowner walks away with nothingThe 'investor' pockets the equity and runsThe straw borrower defaults on the loanThe homeowner is evicted, loses the house and all equityThere are many variations of a foreclosure rescue scheme.

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 have high equity in my current duplex so planning on using that to fund down payment for the next property.  

If you're just starting out, house hacking a duplex or SFH with an ADU can be a great way to reduce living expenses while building equity. 

I'm considering using hard money lenders or DSCR loans, but it seems like DSCR would be a bit complex.

If I had to give up equity I would make sure it was a minority stake and I retained the majority.

The key is ensuring the property can generate enough income to cover the payments and any renovations you plan.As for pulling out equity later, this depends on the agreement terms.

Joe its all about NPV  and rate of return for investors.. either way your going to take a pretty big hair cut out of your equity to do what your wondering about. 

With substantial equity in your Fort Worth rental, a cash-out refinance could free up funds to purchase additional properties.

More doors the better if you are using an FHA type of loan.