You read about things that you cant really understand until you experience them and with RE investing that is very much true.(1) I bought an REO property with a 203k loan that gave me about 100k in equity.

I dont go for huge cash flow I just go for increase in equity and hold for short time and sell, trying to be cautious in this market.But the real problem people are facing is rent is going up and up. $2000 is getting average for alot of small 2 beds. 

I see the example now.Them having $80k in equity (only owing $20k) doesn't mean the house is worth $80k so I agree that if they are happy with $50k, they are "making" money when you buy/wholesale it.

I do not want to cough up another $50k in equity to bring down the payment.I can’t think of any other options other than pulling out and losing my deposit.

I have a paragraph regarding default of lease per below, which doesn't specifically state about early termination: DEFAULT: Should Tenant default under any of the terms and conditions of this Lease, Landlord shall have any and all remedies available to Landlord under this Lease, at law or in equity, including, without limitation, (1) the right to re-enter and repossess the Premises pursuant to applicable laws,(2) the right to recover all present and future unpaid rent, damages, costs, and attorneys’ fees, and(3) the right to recover all expenses of Landlord incurred in re-entering, re-renting, cleaning andrepairing the Premises.

The property also has over 200k in equity. 

Assessed value is ~95,000Offer $87,50075% LTV investment property mortgage for $70,000 - $400/month pmtOwner Holds $15,000 2nd mortgage 15 yr amort. with 5 year balloon - $135/month pmt (total interest pd 4,800 in 5 yrs)I kick in $2,500 or so of my own cash so the owner ends up with around $7,500 cash after his note is paid offmy numbers would be awful for 5 years but i could stash away as much as i could during that time and after the seller 2nd was paid off I would have ~ $25k in equity that barely cost me $10k out of pocket...thoughts?

A couple friends of mine have invested into the suburbs and some of them have built over $500000 in equity in just a year.

My husband owns our house, and we have around $250k-$300k in equity in our home.

If you are only buying properties with the margins to flip and decide to hold onto it, no harm done, now you have a rental with built in equity.