Milwaukee has a great stock of 2 family properties; which I would favor over 4 family as they tend to be in lower grade areas.

I thought we can no longer get re equity on investment properties.

I recently bought a duplex cash, and wish to cash out the equity, so I can purchase more.

I have found a hard money lender that can lend us the money to purchase with a reasonable interest rate and balloon payment 8 months after but is it too risky to plan on the house appraising and getting a home equity loan to pay them back? 

I’m going to lay out all the numbers here and hopefully some people will chime in with their thoughts. 1 bed/ 1 bath condo in north New Jersey (~10 min bus ride to midtown Manhattan)May 2016 Purchase price: $270kDown payment: $54k (plus 10k in closing costs)Current market value (best estimate): $325kMortgage remaining today: $205kCash flow per month as rental: $300The way I am looking at this is I am deriving my “net equity” (net of selling closing costs) to be:$325k x 94% = ~305k, less 205k (mortgage remaining) = $100k net equity.Therefore, my RoE on an annual basis is $300 monthly cash flow x 12 = $3,600 divided by my net equity of $100k = 3.6%On one hand, it seems like I could use that $100k elsewhere and likely beat 3.6%.

That might not be the case as even experienced Sponsor are having a hard time finding suitable deals.Also, the true measure of wealth creation is the equity multiplier which has an inverse relationship with the IRR.

NJ taxes are so high that my comps don't work in favor of buying in NJ. 

Based on that demand the closing agent would give him $30k, reconvey his loan and record a new trust deed/mortgage in favor of the new lender for $80k. 

I’m attempting the BRRRR strategy but can’t refinance for another few months due to having low equity in home.

I give the seller their equity and they move out.