A friend of mine closed on his house with 80k in equity already as well as being booked out for the next 3 months. 

This property didn't cashflow much, however it was in an excellent neighborhood that gave us about 40k in equity.

This property didn't cashflow much, however it was in an excellent neighborhood that gave us about 40k in equity.

Buy in a more expensive market if it doubles you could have 300-500k in equity.

., etc. for about $500 a month, while also gaining me ~$200K in equity and getting all but $20K of my investment back.

For example, John Doe has 5 rental houses, each worth $1M, but only have $400K in equity per house.

It is just a weird market with high prices, high rates, and low inventory and people who have great rates, aka under 5% not willing to part ways with those rates, not necessarily their homes.Also, I understand you are new, but not sure getting something a little discounted or slightly below market means you have built in equity.

For example: 4 people put in equal amounts to purchase a $200000 property in which $2000-$2200/mn rent can be collected.

If you had the 100k currently in equity in cash, would you purchase this property?

Try to buy properties with built in equity.