.- I have a mixed use property with 2 commercial spaces rented for the last 2.5 years and 1 short term rental/residential space I have airbnb'd/lived in part time for the past 2.5 years- I owe about $110,000 and have about $200,000 in equity- My credit is 580 - 620 right now due to being laid off last year and missing a couple of credit card payments.

We purchased a house in the South Bay with land in 2012, renovated the house, developed two building lots, retired in 2018 with $3M in equity.   

Even if you are cashflow neutral, at 4% appreciation the property is gaining over $20,000 in equity a year, plus the principal paydown which I imagine would be close to another $10k.

I’ve purchased properties at fair market value ( 0 built in equity) because I knew that area gentrification was right around the corner.  

It has provided multiple 6 figures in equity since. 

Overall this has netted over 3/4 of a million in equity in that time (sure, not a realized gain but still amazing) and produced true cash flowing properties.

Recently, we have seen an influx of bidders get loans under agreement and then after a month of due diligence (where it should take about two weeks) come back and try and fade a bid for reasons that make zero sense.I know in traditional real estate people will put an offer and then get an inspection done to try and renegotiate the price.For note investing, buyers should remember it is a very small circle of investors and if this is your MO, then it will not be long before you get blackballed For example, if a loan has a balance of $100,000 and you will pay $80,000 and the seller has a value of $275,000 for the property and your bpo comes in at $260,000 - trying to explain tot he seller you need to fade your bid because there is $160k in equity not $175k is not gonna fly.

We have about 100K in equity and have some cash on hand but not enough to cover a 20% down payment, loan costs, and rehab costs so the HELOC or second loan seems to be needed for our first deal.

That's an extra $24,000 a year towards your next investment.I know some investors that have millions in equity but they still choose to rent because it gives them some flexibility and freedom they wouldn't have as home owners.

I wouldn't go for something with a negative cash flow unless you 1) have very good built-in equity and 2) there's a really good reason to think the area will appreciate.