Most deals are coming from equity sellers, investors creating value (new construction, ADUs, adding square footage, etc.), and very last is MLS.

And use this property as equity for my next deal?

At the time the condo value decreased to about 160k and we decided at the time if we could just rent it out to cover the mortgage and fees, we could make some equity and sell it later even though we werent making cash flow on it.  

Your highest cash flow is today and it will only be reduced as your equity grows. 

Plus...escape velocity...Episode 113 – Jay Papasan - Very practical slow and steady adviceEpisode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k Last but not least, I also recommend all the tax advice given by my fellow CPAs on the BP Podcast.

Sounds like the purchaser may need to bring in an equity partner to bridge the gap.Anything other than first position debt is extremely expensive.

I highly doubt that you will be able to create $25,000 of equity with $1,000 worth of repairs (which seems a bit low anyway)  Other than that it doesn't look bad but it all depends on the area.

They cannot achieve salaries that can help support their lifestyles as everything in the City increases dramatically.The population that is staying are then benefiting from their higher equity as their home prices increase as well as their ability to achieve higher salaries from those jobs that require a skillset for it.With the higher equity, if they owned, they are then able to send their children to higher quality of schools which we know are expensive today.When those kids come back, they want to stay, mostly because it's a great place and they can afford it by going to these quality schools and Universities.ANYWAY, I think you get the point.I have been seeing this trend for the last 21 years investing in Brooklyn, NYC.

I have talked about using a 3.5% down FHA loan with my lender, but also have looked at incorporating the BRRRR method to build equity into a property using a conventional loan.

Is the 25K down worth the $1300 cash flow and the $3000 in equity I will build the first year?