I would expect there would be an outstanding loan balance, depreciation, and other factors that would leave only the ~750k at the sale closing to bring into the other deal.

If so, is this typically for the outstanding loan amount only?

This is a great local thread....I'm having excellent results and outstanding customer service from Brian Roy at BluCurrent Credit Union.  

The reality is coastal CA has provided outstanding cash flow for the long term hold who does not refinance to extract equity.  

He is upside down with the property and having a outstanding balance of 187 K.

if so why not just work a private deal with her as the bank. or.....if she's really nice have her sell it to you for the outstanding mortgage balance (which should be pretty low considering you have "memories" in it) so like if she owes 50k, just buy it for that much. and you can repay her the spread through a separate private deal?

That is the main reason I am investing in rentals (buy and hold).I have been reading all I can on BiggerPockets and the wealth of information has been outstanding!

 $1k/month cash flow per door is outstanding for anywhere in the Midwest as it likely requires a rent in excess of $2500/door (that is real high rent in the Midwest).  

And I agree completely, outstanding instructor!

I know you want a low down payment and I know you want to stretch the pay off for the outstanding balance out as far as you can.