The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money.

I once had a guru say that people who use their own money in real estate are lazy.

Maybe with so little practice they’re not very good.We’re going to assume the property appraised at the selling price or close enough for the buyer to bring the extra cash.

Is the reason why this is lucrative to the seller because it's money that is able to be written off as a loss? 

Are you spending money on lead generation?

In growing markets I’d always recommend BRRRRs over flips if possible.You'll probably still have to keep money in the deal but it's way better than putting down the whole 20% LTV. 

Which would have kept more money in my pocket.

I would be using all of my own money for both the acquisition and the rehab.Also, I would (attempt) to GC this myself to save on the rehab.

If the tenant fails to complete the job, or does it poorly, you'll have to hire someone to finish/fix it and you'll be out the rent money. 

This strategy requires knowledge of local markets, renovation costs, and the ability to manage or oversee renovations.I am a loan officer and I could advise you on how to tap into that equity and put that money to work.