Here's an example:You have a $100K property with $50K in equity that generates an annual net income of $5K. 

Most people who are buying turn key's know that they are not getting a lot of built in equity.

I am currently looking at a 200k property (3-unit house).I wonder if its wiser toA) just finish paying off my 1st property and then getting a 2nd laterB) use that money to make a big downpayement for a 2nd property c) get (2) 200K rental properties and put down 50k as a downpayment for each.d)buy a single-family house CASH paid in full.And probably make $1000 month in rent and then use this INCOME to either help pay off my 1st prop mortage or to buy a third property later.Simply put... if you pay off the mtg, you have a *Stuck in Equity doing nothing *You don't get tax breaks on interest *You are not LEVERING UP. * Missing the boat big time - you are getting cheap money from banks...borrow as much as possible and lock it for as long as possible.

I would be reducing my income hundreds of dollars per hour.Just like an investor wants the best deal to purchase the broker/agent should be trying to build the best business possible for themselves.I totally understand what you are doing and wish you the best success.I get contacted sometimes for people wanting to buy little houses in Atlanta.I am upfront and tell them that is not what I do and I can't help them with that.800 in rent for about a 50k to 60k house is what investors are looking for in the outlining counties here as well.They are out there but they go quick.I am starting to see new home builders put up new homes and see advertisements which I haven't seen in about 3 to 4 years.California is a speculative state based more on betting for appreciation so you can't look at that market in many areas from a cash flow perspective.Investors will just over bid you there for the appreciation play only.If it breaks even or loses 100 a month they are fine with that.I get contacted with investors from New York,California etc. where they do not like the CAPS there or what their money can buy for investing versus other states.Getting you license might be a good idea if you want to just buy property.You have a bigger payoff in your price range than another agent would searching for you.If you land a deal that eventually nets you 50k in equity than it was worth the search as a buyer.If you are an agent getting 600 bucks for that time not so much.You would have to string 10 sales together to be at 6,000.You would have to do over 8 closings a month just to make 100k a year.I just don't see that as a sustainable business model for a broker/agent without burning out.

They have the money....And they don't want to own the houses.....So, to recap...you find a deal that has 30k equity...you convert that equity to cash...You reinvest that cash...And rinse and repeat...Instead of find a deal with 30k equity and wait 15 years for another 30k in equity paydown....when you could go out and find another deal...

It would be netting $5000 month now with half a mil in equity, a true beautiful golden goose, and I let it fly away.  

I understand the upside to this is getting another property, and getting back that cash flow back from that, having tenants pay down another property, possible appreciation, an increase in equity after rehab, more tax write offs etc...    

Sadly since you have ALL your money mired in equity your options are severely limited..NONE.  

@Salvatore Lentini, Hi good morning.Yes I want to become a real estate investorI have over 200k in equity in a couple of properties I own.

Approx $40k/yr in profits (see below)B) The parents take out a HELOC on the house, take maybe 50-75% LTV in equity out of the house( $600-750k), and use that money as a 25-30% downpayment on some kind of investment property, maybe a $2-3million convenience store / drug store property or a multi family apartment building.