But the equity capture ($82k) is good on the deal.

I am not able to get him to come down on what he thinks he should get so I am thinking of offering a sandwich lease in order to capture some passive income he is missing out on. 

This equity (or 75%-80% of it) can be accessed through refinancing every few years or you can let it continue to grow and capture all of it selling the home later.I really like these deals, but it depends if you are looking for cash flow or net worth growth.Avon and Brownsburg are really great areas to check in to... but the numbers have to work.

I'm trying to help a friend navigate a creative loan to buy his current rental house and capture some 'free equity' while keeping the stability in his son's life that he has worked so hard for.Brief backstory:  I've known the guy since middle school, never really close friends, but we've stayed in touch through Facebook over the years. 

So they both have their pluses and minuses.Rentalutions was easy to use but they had no landlord app or way to capture expenses like cozy and TenantCloud

As a Professional Chef i am naturally handy with my hands.

I'm interested in buying Bay Area property off market to rehab but then live in it for a couple years to capture tax advantage with the gain when I sell, then repeat.

You don't even have to flip the house, just buy into the up and coming B-/C+ area and wait for appreciation 2+ years to capture those $250/500k gain.Of course you somehow have to identify the areas but at least in the Bay Area, it's more obvious where the older neighborhoods are gentrified with tech workers.

Yes it's done all the time it's basically a live in flip under those circumstances.That's assuming you mean selling it after a few years once you've captured appreciation.Otherwise you could keep it as a rental and then refinance your equity out to buy a second property.Also worth noting as long as you live in it for 2 years you'll also get the $500k Home Sales Tax Exclusion.It's really just a matter of if you, your wife and one year old want to deal with living through rehabs.

The purpose here is to create enough captured equity that I'll be able to 1031 the houses (defer taxes) and afford the larger loan for a multi-family later on.