Because we are getting such an incredible deal on the property, we think we could sell it for about $75k more than what we bought it for and the next owner/investor will still have the potential of making a 6 figure profit if they sell it or gain 6 figures in equity if they keep it and update it.

After paying in additional 10% in Principle.Mortgage will go down to 1290/month.I realize there is a negative cash flow to start, but im thinking the 15k in equity off the bat and highly recommended tenants making rent payments in the 1st month is worth it (no waiting a month or more to find a good tenant.)Main goal is buy and hold.

Subtract 6% for transaction costs and $125,000 for the remaining mortgage debt, that leaves you with $260,000 in equity on your $60,000 down payment + call it another 10k in closing costs. 

I'm also building a high-end rental vacay home in Montana that, based on the price I paid for the lot, construction costs, and vs. comps in the same subdivision, I'll have about $500k in equity when it's done, and will generate VBRO income or similar afterwards.Moral of the story: diversification is king.

Will the $$ you have in equity be utilized in a better way if you sell (keep in mind today's pricing), or to kick back and let your tenant (and future ones) "pay for" the condo for you.

The reason I lean towards this method is buying at very low cost, fixing/flip, rent out much higher and then cash in equity for the next and so on.

They attempted to cram down a loan that had over $50,000 in equity because the HELOC was coming due during the BK period citing HELOCs as a "short term loan." 

I own a rental property with around 100k in equity.

Assuming you sell for $300k, of which $100k goes to pay off your debt, you could use the remaining $200k in equity for down payments of approx $25k each (25% down can get you better interest rates), giving you 8 cash flow properties which would be paid for by tenants by the time you really need the income (retirement) and provide moderate rental income in the meantime.You'd have to be able and willing to take on that much debt, of course, (so your debt-to-income ratio, annual income, credit score, etc will all impact this).

List source with owners over 45 years in age with at least 60 percent in equity.