Especially with buying a home with built in equity, if not for ROI, at least to use it as an exit strategy. 

I would not keep 65k in equity locked into this deal nor would I purchase more of the same.Maybe try looking out of the area if you are fixed on rentals.

It sold for 30k lower than what i would have asked.I allow myself to regret both because it they stick with me as great lessons. 180k in equity and $500/mo missed cashflow have helped me greatly.

You're either going to have to look at a strategy that generates returns more quickly, like Wholesale or Flip, or you're going to have to find better deals, where you get into the properties with built in equity that you could then pull out to fund either the rehab or your next purchase.Hattie

Lenders will want you to have some where near 20% in equity of the project.

When you have a few million in equity, or you are dealing in multi-million dollar commercial properties, reconfigure and take another look.  

@Jeff HurseyIllinois has an intrastate crowdfunding law, which allows for non-accredited Illinois residents to invest in equity crowdfunding.  

You would then have $79K in equity (20%) and pay him back the $317K.

Your largest expense is in fact not the mortgage it is the value of the equity you have lying dead in the property.Based on the fact that you are not seeing any cash flow and do not seem to understand that equity you have in the property is reducing your return even farther I would advise selling immediately.Every $10,000 in equity you have in a rental property reduces your monthly income return by an additional $83/month.

So the significant difference would be the ability to build in equity, leaving little actual cash in the project once completed and permanent financing is completed.