I think I understand that because I’m not able to max out the cash out and still generate the minimum level of cash flow is why there is dead equity?

My only concern would be a drop in the economy and not being able to cover costs in case I had to lower rent. 

Here in Chicago, the $1M+ SFH market starting really softening about a year and a half ago but for several months no one lowered prices.

Lower to market n you'll have a tenant by next week Thursday. 2.5 Months without rent is $5,000. $65 a day adds up fast. 

Louis and went to school out in the Bay, so I'd be happy to connect on several levels!

You could lower your down payment and delete the closing cost by getting the home Owner to finance. 

Also, if it has been on the market for that long- over a year, then I would offer a much lower cash price.You didn't say what the rent was either? 

Over time, I suspect I will become more conservative and have more equity in my properties, lowering the RoE but also lowering risk.HTH

A lot of our areas are well below the poverty level so there isn't an abundance of cash flow.

Also, say the economy tanks or the interest rates are just really high after the reset, I can ride the storm out better I would think with a conventional loan since it would require lower payments than the conventional loan.