They are looking for an equity stake.

You can check and see how much equity is in each from a few of the foreclosure sites.

Understanding The Income Tax Implications Of Tap Home EquityPrior to the passage of the Tax Cuts and Jobs Act of 2017 interest on up to $100,000 of second mortgage debt via home equity loans or HELOCs was tax deductible no matter how the money was used.

(I get it - I've done this multiple times myself, but you need a friend in the business to write up the bid because they are doing you a favor with no return)If you're able to keep these things in mind when talking to one, you might be able to mitigate some of these obstacles and actually get one out there.

If that's true, you may not see increases in rent or equity for quite some time.I also wonder if you have a reserve?

The new law did not favor S-crop vs LLC either, so I dont see what your tax man is thinking. 

So could I pull the equity out of my 2 rentals maybe even my current residence to do a flip or buy a 3rd rental?

@Jeremy Johnson a mistake many new investors make when considering the BRRRR method is in order to refinance out you need to build in significant equity.

(3) Any assignee, subtenant, or replacement tenant must, in Landlord’s discretion, be acceptable as a tenant and must sign a new lease with terms not less favorable to Landlord than this lease or otherwise acceptable to Landlord; (4) If Tenant requests termination of this lease agreement early, notice of no less than 60 days must be given to Landlord.

The only reason I think it works for our existing house is we leave 150k in equity and keep the piti lower.What I’m hearing is $400 positive is likely at best a break even.