that said, if i walk in with a 30k offer, i will make between 5-6% on my investment in the short term, and can sell it for the built in equity a few years down the road.given this new fact pattern, what is you guys' opinions now??

In the five years I have been investing, I have yet to see any return in equity.

Thus, it would be difficult for me to purchase an FSBO unless the property had a lot of built-in equity; being sold well below FMV.Based on what you stated above, recent sales/comps in immediate area are not strong.

You could "merely" have $2mm in equity and actively manage that for $25k a month in income.

In the event you join a person in an LLC, any member with 10% or more ownership in equity will need to be underwritten on the loan.It sounds like the seller is not willing to accept conventional financing.

I own my own home and have been lucky enough to make over $200 000 in equity.

That said, with a rather minimal amount of equity, if it was a large enough deal (this is not what I think you're asking about, but just to give a full answer), something that requires $10 million or more in equity, you can "borrow" the equity from a private equity firm that makes you the sponsor of the deal, even with a very small equity percentage and then as leveraged equity returns go up (over 20%) you get more than your proportionate (pari-passu) share of the deal.

We have about 100,000 dollars in equity in our home, thanks to some lucky timing and appreciation (although we've only knocked off about 15,000 from the mortgage).

If my first is 3.5%, 7% seems just about right for a home with steadily increasing values and over $110k in equity.

I personally like to buy them and have them rehabbed where I can have at least a 100% return on capital gains (i.e. if my all in costs are 10K, then I need to capture at least 20K in equity) or 20-30% equity based on ARV of the property.So on a 100K house, I am all in at 70K with less than 15K out of pocket.