Purchase price: $350,000 Cash invested: $100,000 Sale price: $875,000 Stamford water view single family home on Long Island Sound.

•Are they typically given a percentage of the cash flow along with interest on their initial contribution?

If a seller has a very low interest rate and the buyer can pay more than what it is worth and have no realtor commission, so more goes to the sellers pocket.Subject to has been around for decades. 

The travelers who are willing to do rent-by-room also pay on the lower end of the spectrum so it may be hard to get your property to cash flow. 

If you're just starting out, a turnkey cash flow rental is a solid move.

If converting a commercial unit to residential costs $50k and only brings in a few hundred dollars more in rent, it might not be worth it.

I DON'T THINK IT IS WORTH IT. 

So cash out refinance is my only option 

You should stop by the Cash-Flow Breakfast club in Moco, great community/networking for real estate investing.

I would just add that some of those lower priced, cash-flow areas will also come with more intensive management requirements.