You keep referring to the "equity netted", but you could have gained equity as well on another asset that cashflowed better. 

Probably to save on capital gains taxes. 

Since everybody knows, the best way to gain experience is by doing nothing.

1) Be forced to start investing in small deals that will earn me negligible monthly cashflow to gain "experience" in the eyes of commercial lenders2) Continue to sack away capital year after year until I have cash reserves that will allow me to obtain a commercial loanI have heard some people say that they found co-signers on the loan who have high net worth but the last thing I want to do is approach family or friends with this when so many of them are also young professionals with little net worth or are highly leveraged and busy business owners. 

I have been lurking on these forums for a bit, gaining knowledge and finally decided to pull the trigger. 

My plan is to gain as much knowledge on real estate investing by reading books, going to events, and meeting great people involved in real estate.

I was trying to gain a more favorable value by buying the homes based on comps and then essentially repositioning them by simply switching to a commercial appraisal which would be higher.

Forgive the side trail, just eager to gain understanding in this arena so I can transition from employee to entrepreneur.

I understand you may have to buy cheaper properties or wait longer in between purchases, but wouldn't the financial gains turn out the same in the long run?

I joined the site to learn, expand my knowledge base, network and hopefully gain some new business.