If you don’t have healthy equity, you may need to bring cash-in to obtain the new lower mortgage rate. 

If they turn it down all that money is gone.So if after studying all of those requirements and adding up all of the costs, there is still a delta in pricing wide enough to give you a healthy profit margin (risk-adjusted, of course, because there is a lot of risk here) then you have a winner.Now the elephant in the room...your example was an A property in a C- area. 

We both have good credit, no debt and a healthy enough cash position that a 10k mistep wouldn't sink us.Many thanks

Cash-outs are going to require skin in the game, at least at first.

The draw back with cap rates and anticipated appreciation instead of healthy CF is that the market does not move froward at a steady pace; so when you buy and when you sell is critical to whether you get any gain or not.

I have decided to use about $10K in a SDIRA along with some funds from a HELOC for my "skin in the game"I am looking for a step by step of how to get this done from anyone who has had similar circumstances. 

You might be able to put a little bit of skin in the game and learn a lot by doing some grunt work.

When our investors are putting their retirement savings, and kids education money into our deals, we have an obligation to ensure that we reduce risk as much as possible while provided healthy steady state returns.

Most lenders want you to have some skin in the game and will lend 65 to 70% of the ARV.  

No skin of my nose if they aren't going to charge me maintenance fees, etc.5.)