You just put more money down for cash flow.

Well it rented it for a year and told the owner I wanted to buy it if he put it up for sale.

I know that most people who OWN a property and put it on airbnb claim the income on Schedule E ("passive income"), which avoids having to pay the 15.3% self-employment tax.I'm wondering if those who are practicing rental arbitrage by renting the place that they list on airbnb also claim the income on Schedule E, or if you claim it on Schedule C bc you don't own the place that you're listing on airbnb.Whether you own or rent the property that you list on Airbnb, the activities are the same: acquiring the property, furnishing it, activating utilities, listing it on Airbnb, hiring cleaning services, etc, etc.

Foreclosure lists I think can be determined at some sites like propstream (I've never used it so I could be wrong).3: networking with lawyers that do probate situation and/or divorce situations and want a quick close4: Owner occupant of a property on Hud Homestore - basically trying to help first time homebuyers buy - less competition5: tax auction and tax auction sites6: Offering on properties that have been sitting on the MLS for LONG periods of time and low balling them.7: Calling owners that have recently had their property pulled from the MLS.8: Wholesalers that are selling to you with an assignment fee.9: Low balling every property you look at on the MLS and seeing what sticks.10: FSBO with strong negotiation skills.11: MLS when you see the property really quick once it comes on MLS and put in a full price offer but it was mispriced low (I got a gem a few years ago that has probably close to doubled in values since 2020 when I bought it).12: MLS offers that you really want to ownI might be missing some others but these are the general classes of people that I have noticed. 

I was wondering if there are other ways to liquidate some equity and put it to use to buy more properties.

Not sure if the answer isa) nothing I can do about it, b) put a wireless water meter to help detect leaks on it (how does this work for a rental where the internet is theirs?)

So, if I am putting down say 20 percent on a new loan for a vacation rental, my realistic goal should be "Let other people pay off the rest of my investment for me."

Do I put a low deductible on my wind/hail and then use insurance to pay for a new roof once it fails? 

Hello @Adam Taft, Usually the properties that I've put out in Boerne have either been properties with a lot of acreage or higher end flips.

As someone mentioned likely hotel lobby far too strong politically), Palm Springs, La Quinta (not Palm Desert - Marriott too strong & outlawed them / and not Cathedral City - they just put a moratorium on STR permits late July 2019), and Joshua Tree.