I currently work in the construction field and have gained a decent amount of knowledge in regards to residential construction.

My question is when analyzing a deal what amount or percent do you add for a fully rented multi family home?

So, you need to make sure that the amount you're able to pull out is worth it to add another 15-18K on the life of your loan.

A typical “homeowner” policy does not cover vacant property, after a certain amount of time anyway, particularly when your intent is to Never occupy....verify with your agent.

Then buy my next house with that cash which won’t amount to a significant down payment.

I own a PM company and a considerable amount of rentals (some I manage & some I don't & some out of state), land, vacation rentals, etc.

The tenant pays an amount up front, and you give that person the option to buy the house over the next X number of years at a fixed price you decide at the beginning.

If you are planning on exiting the property within a short amount of time the benefits may not be worth it- I would check with your CPA and/or cost seg tax specialist on it- Michael Blank interviewed a cost segregation expert on his show- episode 23 I believe titled "Save BIG with Cost Segregation for Multifamily Buildings"- they discussed cost segregation on SF + multifamily assets so I recommend checking it out!

We would like to start recycling cash at this point as we have a lot of equity but mostly properties that are under the 50k mortgage amount.

On a side note...my wife and I will also be looking for a house to rent next spring and would love to connect with owners who need a tenant around that time and would rent it to us for a reasonable amount.