If you can buy great deals though, say 70-80% of true market value you can have a safety gap between your debt and equity.

We do have enough equity.

It get even less efficient when you consider cash on equity, which is really an opportunity cost calculation. 

Occasionally you will find someone who: 1) can't afford their property anymore and is tired of the struggle, and 2) have enough equity in the property that you can make them happy while still buying at a discount. 

Hey there, Right now I have about 50k in equity on my rental.

Is there any difference in how you approach these situations assuming the houses have equity?

@Michael FaudoaIf you invest sweat equity in a partnership, the accounting for it can get pretty complex. 

I've considered potentially using the immediate equity to buy an out of state multi that produced enough cashflow to pay the 2nd position debt plus offset our holding costs over the years. 

The lease amount is under market rate and I want to try to renegotiate a new lease with more favorable terms. 

The lease amount is under market rate and I want to try to renegotiate a new lease with more favorable terms.