one is appraised value and one is market value.. took me a few years to understand that .. even though something will appraise at 100k say and you pay 80k and think you got instant equity you will NEVER sell it for 100k it will only sell for 80k.Now there are a few turn key's that do BRRR I call it turn key light.. but its a process and it takes time to get these deals done.. but the refi usually gets pretty close to all your cash back.... but don't think you have true equity.. it does not exist in those markets the way you or most of the out of state or area investor perceive it.

It does sound like it would cash flow and give you instant equity depending on whether or not it needs any work.If you have a better deal go for that, if not this doesn't sound too bad.

I instantly smelled something bad. 

That still leaves me negative cash after costs so I could possibly simultaneously refi the house instantly with a lower 7% investor of 140k. (60-70% ltv of awesome house ).

@David P.We have had a couple of tenants who were on a monthly rental period, but who would deposit a portion of their rent bi-weekly (on each payday) as they did not trust themselves to hold it until the first of the month (ok ... one did not trust her husband).  

You need to get in front of sellers, makers offers and turn those offers into deals you can then turn into paydays.

Her response was "like The Rock" (in my head "yes instant rapport) long story short (well not that short lol) we closed a nice seller finance deal all because of "The Rock" thanks Dwayne "the Rock Johnson...

They sell a dream of making instant and easy money which is why they're so popular.The best piece of advice that I can give anyone who is getting started is to create a business plan and treat this like a business.

The thing about commercial is that, if you sell a commercial building after 2 years for 1.5 million after purchasing for 500,000 you are instantly a millionaire and have only had to put the work into one single property.

Also, my wife instantly found a dream job in her field within a month (something that proved almost impossible in Denver's highly competitive market).......I do miss those powder days, though.