Also are you looking for equity play or cash flow play, as that would make a big difference.

I think that just looking at that in general will open your eyes to what the reality of your purchasing position is.2) Within the areas where those properties pop up, determine what units/locations will attract tenants that you would like to rent to.

Someone suggested that I could perhaps cash the equity out of the free and clear rental I have and use that towards the purchase of this deal.  

But bought a condo with tenants very very cash flow positive for 73% less than it had sold in 2005.  

If you can can't find a private lender to lend that small then offering the same people an equity stake in the deal.

You could be very net positive in this transaction.I suggest you have a lawyer write or review all the paperwork.Jen, the real estate lawyer

Personally I would invest in a fund with an 8%+ preferred return with equity split that pushes the realized return to double digits before I would pay off that debt.

I'm having a very difficult time getting some of the equity out to fund the purchase of a multi-family.

It is just not a profitable situation for PM's, thus why these homes do not work for out of state investors because the companies that manage these homes hire low level entry level positions. 

The risk is not covered by protective equity, so a lender would have to "just take your word for it" that you'd repay the loan.