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.

After that amount of exposure, my following up and discussions with showing agents lead to multiple offer situations on both homes, netting me more on each sale.Ultimately, it comes down to how you run your business, your follow-through, etc.

After I've built up a sizable amount, I will transition into a BRRRR strategy.I'd love to connect with other investors and possibly even partner up and contribute capital towards a deal! 

Is there any statue or laws about the maximum amount you can charge as an application fee in the state of CT?

@Walter Aaron PolingThanks Aaron, I am concerned that both loans might be very super close to the rent amount.