I could be wrong, but I don't think the economy supports those numbers.

@Lexi Blocksom If the burden of holding the property outweighs the long-term gains, a 1031 exchange allows you to defer all taxes, and you won’t have to recapture depreciation.This option enables you to use the deferred tax benefits to purchase nicer properties in areas with greater growth potential.Once you complete your exchange, you can immediately do a cash-out refinance if you need access to some cash, tax-free.

Would you be able to do a cash out refinance and still cash flow?

It's hard to find a cash flowing rental in this area, but paying all cash certainly helps!

If you're willing and able, I do recommend the "house hacking" strategy which is just a fancy name for buying a rental property and living in one of the units, because you'll get very favorable financing - an owner-occupied fixed-rate 30-year mortgage.I'd also say, analyze that property as if you won't live there and it's a pure rental, and make sure the property is still cash flow positive if there's a tenant in your unit because then you'll know if it's actually a good investment.And when you analyze it, include payment of a property manager in your #s because if you don't, and doing so would make it go cash flow negative, then you've just bought yourself a job because you literally can't step away from managing it without losing money.

Because of the price(in most cases) the cash flow will be limited but positive. 

Use the funds to buy 1 -2 LTR rentals cash or use a loan and get 3 - 5 LTR's.

According to the lenders I've spoken with, we can't do a cash out refi either.

Based on comps I could get about $2,200 a month in rent. that breaks down to :-$1,100 (+) -$600 = -$1,700 in mortgage/HEL$2,200 -$1,700 =$500.00 profitOr the Home Equity Agreement I get the $62k cash with no payment.

Rise48 is raising preferred equity at a valuation that is not market, with income growth projections that are unreasonable, and putting $7,000,000 of new investor cash back in their pockets... $7,000,000!!