@Edison Reis@Thomas Franklin provided you an overview of the concept, but mortgages and mortgage insurance are executed a little differently in Canada and several of his points are not applicable north of the 49th.In Canada, you can insure pretty much any residential mortgage (and a few commercial mortgages), however, similar to in the U.S.A. example provided by Thomas, mortgages must be insured when they are greater than 80% LTV (high-ratio).    

It's not a straight forward concept but using the 1970's as an example, most of the "gains" (measured by an increase in purchasing power) in RE was not a result of home price going up but the value of the debt going down.  

This isn’t too big of deal as the losses will carry forward, but you should understand the concept so you don’t have blown expectations.

The concept of sunk costs being irrelevant to investment decisions (aside from tax implications) is one of the core concepts I most vividly remember from getting both a BBA and an MBA in Finance.    

I live in Charlotte NC and I'm new to the concept of Wholesaling Real Estate. 

You should take a look at some plans so you have a rough idea of what you're looking for when you sit down with a builder, this will save you time when you do your consultation, also the City will want to see what you're planning even if it's just a concept.

After debt consolidation, however, there will be insufficient remaining equity to take additional cash out.Bret, I like your concept of flipping to yourself.

 $83             /Vac%Rep   $165     ==---------------------Total        $1625Rent         $1650 => Cash Flow = $25 (I even think this would be taxable, but I omitted that)1st yr:ROI: $7731 (Principal paid+cash flow)/$50k (down payment and omitted closing)= 15.462%ROE: is the same as ROI in the first year as the down payment and equity should be the same in my opinion (unless you take into account the under market value at which you bought, the appreciation for 1 yr and don't omit closing costs, but it still doesn't change the concept; I omitted all of these things for simplicity).2nd yearROI: $7997/$50k = 15.994%ROE: $7997/($7731(1st yr)+$7997(2nd yr)+$50k (down))= 12.167%7th yearROI: $9466/$50k = 18.932%ROE: $9466/$107913 = 8.772%12th yearROI: $11216/$50k = 22.4332%ROE: $11216/$162468 = 6.903%16th year (1 yr after mortgage paid in full)ROI: ($12660-$4304 due in income tax)/$50k = 16.712%ROE: ($12660-$4304 due in income tax)/$200k = 4.178%As per my example you can see that, once you are close to paying the mortgage off, your ROE is significantly lower than it was before.

I would rather give friends and family a 10% rate than a complete stranger.I've been thinking about private money to help finance more acquisitions and like the concept of preferred equity arrangements.

The history and concepts haven't changed, but there have been some major industry-wide changes since then.