Without rehabbing houses and building in equity this is likely the quickest way to acquire multiple properties that are producing income. 

I have almost $65k in equity but am now carrying about $40k in mid to high interest debt from the rehab (private loan, Home Depot project loan and some credit card) that I had hoped to pay off when the property sold, or with the cash out on the refi.

I don't want to be a flipper, but I see the value in buying a somewhat distressed property and rehabbing it and achieving built in equity.

Let's say you found a fourplex that is worth 300k and the owner has 275k in equity.

This should pay back all of your initial principle and maybe a few dollars in equity.  

Guesstimating $200 monthly cash flow.Loan is for $143k and ARV at $150k, so only $7k in equity to start.Home was flipped in 2012 as it is from the late 60's.

It seems I need to have a conversation about what my 401k will and won't allow.I have around $85,000 in equity in my 8-unit

Without doing any updates it looks  like i gained 10-12K in equity capture when purchased. 

Add in equity pay down to that for a better monthly return.I do not understand why so many are thinking this is not a decent deal. 

Made them sign a tenant and landlord agreement 6 months ago and basically said they want $300K in equity and will give the rest to my friend.