They don’t need the $100/door to keep food on the table, they want to make 100k per 3-5 years in equity (not even counting tax shelters) and be a landlord on high priced market.

our home is currently valued $202,116 and I have a principal balance of $147,654, if I understand that correctly I have about $27,345 in equity (Right?).

I am currently in the process of purchasing my second home with about 40k in equity on the first.. if I rent this home out I will cash flow about $200 a month.. is that a deal considering I put no money in?

Minus out the remaining loans we would be at over $4 million in equity.  

But I will have taken 60k or so and I will have created about 60k in equity.

Usually they get the property under contract with 30% or more in equity built in before they come to you to borrow and the arv (after repair value) is based on the the neighboring real estate values.

It may not be worth it right now and you might turn it down, but if that property appreciates and you can get $50k in equity in a year, you made almost $4200/month in one year from one deal.

If this property appreciates 3% a year (which is conservative for this area) he will gain an additional $2,625 a year in equity.

Probably the biggest issue I now see with TK is that unless you find a good enough deal that has built in equity and positive monthly cash flow it could be a risky deal.

Thats where a lot of the flow of people are going, and if you couple that with off market deals & aggressive negotiation, you can create amazing rentals with built-in equity and multiple exit strategies.Our buy & holds are in Tacoma & Des Moines.