I only buy distress properties because i get a discount for it and i get between 20-25k in equity.  

There's about 140k in equity in it and it has a 3.7% fixed mortgage rate.  

Assuming that it does not cause issues with teh DTI ratio, you should be able to use a HELOC for the DP.Your permanent financing will most likely be done at 75% LTV, but this can use the built in equity.

Even if property values tank, people still need a place to rent and rents may even go up.2) You can easily access the returns from cashflow, and potentially live off of cashflow passively.3) Since cashflow returns are immediate, you can reinvest those returns quickly as opposed to value locked away in equity.4) Cashflow properties are often cheaper, meaning a lower barrier for entry.5) You don't have to worry about buying at the wrong time, as you are profiting immediately.6) Predictable.

We have a TON of money in equity on our primary, want to get into RE.

My proposed idea sees 500k in equity being in each WY LLC.

We have a separate savings account specifically for investing, however, our house currently has approximately $45k in equity thanks to the growing market in our area over the last 5 years.

Some have more than $1 million in equity, while others have less.4.

I have about 300K in equity if I do a 1031.

That one took a year to build and gained $80k in equity over the year.