Now if you build from the ground up or do a value add lease up with vacancy you can get a higher cap rate.The ones that are already stable in great area the owners will  not let go at a really high cap they will just keep the cash flow then eliminate their equity gain from buying 4 years ago.

In order to build wealth and make money work hard for me,I am thinking about how to use the equity I build.After I purchase the property,if the refinance LTV ratio is 70%,the value of property should increase about 40% to refinance all the capital invested in the property.And if the property appreciation compound annual 10%,it need take more than 3 years to get 40% increase.If the property does not appreciate a lot,the refinance does not worth it at all.So I need to use the capital I invested in the property more than once,I need to choose the property which has al lot of property appreciation.Anything wrong about my math?

(Seller needs the equity out asap, so seller-financing is out)As for the deal itself:       Located a few towns over from me (but not far enough where management would be a hassle), right near the better part of the borough, near the middle school, very close to stores & very close to where new construction is being planned & the area is on an upswing.2 - 2 bedrooms (1150-1200/each)4 - 1 bedrooms (850-900/each)Going inside it this week, but from my walks around the outside, I'm ballparking about 100k in renoSeller asking for 200kTaxes as-is about 6500Seller states all zoning approvals & site-planning have been completed, only thing left to do is pull permits and put nails to woodAs of right now, my immediate plan would be to sit down w/ the commercial people at my lender's, assess my standing, and start all the other due diligence common with a typical, residential purchase.

.$180K CASH, $1,100 positive cashflow after HOA is only bringing in about 7% annually.

We have $130k in equity in the house, and as I said, we're saving for the rest. 

I’m a relatively new investor and looking to the BP community (which is great) to help me navigate my most recent lesson and potential actions.Let me explain.Just over a month ago I bought my second rental property, a duplex in a nice part of town.The property lacked general maintenance and was one of the reason’s I was interested in the property in hopes to force some equity.

Keep in mind with FHA PMI there is an upfront 1.8xx% that you pay on closing then you also have monthly PMI and it never falls off the loan until you refinance(at above 20% equity).The reason I say refinance after 12 months is 95% of banks require a home to 'season' for 12 months between the initial sale and a refinance in order to take advantage of a higher home value.

I have had this burning desire for a couple years to start back flipping homes and then would like to rent for positive income to fund my flips.

There are a ton of ways you can start off as a budding investor, like partnering with someone more experienced, bird-dogging for an established investor and providing sweat equity, because at this point in your career that's your main advantage, plus knowledge of social media etc.

Keep pulling out equity as it grows so as not to reduce your cash flow from the property.