And if you look at the stats: 70% of the $3.1 or $3.7 BILLION in equity came from REPEAT investors.  

Some have more than $1 million in equity while others have less.4.

A small fix and flip loan would give you the ability to access the built in equity much faster, even if it is a 'stabilized bridge' loan that would allow for you to wait the 3-6 months for seasoning.

With built in equity .

You also might run into issues finding anyone to do a closed end with less than $100k in equity. 

When I crunch the numbers I get a little scared because the cash flow is very low, I have found a purchase that would be positive in equity in the next year or two.

i would cashout and keep the condo . selling it you're giving up 8-9% . you can cashout to 75% lets say for example . its about a 15% difference in equity and you keep the property 

We got a great deal on the property and we are going in with about $275k in equity.

Investing in debt can be better than investing in equity --- it depends on your take on it. 

Due to age of owner's (70+), money to be made selling ( rapid increase in equity), change in the market area (over crowded beaches/Pigeon Forge strip) and life changes (divorces/death) the owner occupied/2nd home owners sold.