Even if that is not the case initially, strongly appreciating properties also tend to see corresponding market rental rate increases - meaning that an initially weak cash flow property could become stronger in a few years' time.   

Or you could buy a duplex in need of rehab and wrap the rehab into the initial purchase price with 3.5% down....which would ALSO work very well and show very good "cash on cash" returns. 

All of that cash can be used for down payments on properties that will pay you large dividends on the initial capital you held so close. 3.

Hello all, we recently received a new estimate from our GC on a flip property in San Antonio and the new estimate is about 50% higher than their initial one (the one prior to buying the home from the wholesaler to flip/receiving hard $$, etc).

The strategy isn't that different from what you are doing except you would be finding properties that need some work that can help you refi and get your initial investment out.

Let me be the first to congratulate you on taking your first steps to a new lifestyle and taking the initiative to learn an entirely new skill.

Tarik Turner - Thanks for your response to my initial post.

This is more of a turnkey purchase with not a lot of initial value add.

My initial offer was for $150k assuming a rehab cost of $20k.

However, the seller knowing my specialty, countered asking me for a proposal with more upside for the seller or to do a rental arbitrage.My initial offer was a 5% upfront cash payment, 15 year repayment plan at 4% interest and attempt to refinance within 7 years to repay the seller in full and secure more traditional financing.