Our credit scores are both above 750 and we have around $50k in equity with the house.

What I mean by this is buying a property that offers enough room in equity, cash flow, etc. to the point that you can still be positioned correctly regardless of market fluctuations.

You have $100,000 in equity in the property costing you $833/month in lost income, you do not want to lose any more.

You would have to do it sub-to.If you could get the sellers to take 2k instead of 5k, you take 2k and arrears of 4k that means the buyer would pay 8k to get into a home and now they have 20k in equity. 

But when we did this in Dallas on a 320 unit, 200 takers paid $25/mo that $5K income/mo or $60K/yr divided by the 6% cap rate (.06) added $1m in equity to the property on something that cost maybe $100K.  

I’ve crunched the numbers and to conservatively reach that I’ve estimated would take 1.5M in equity at least.  

The property currently has about 60k in equity. 

All of the details, including drawings and pro forma, will be provided following initial qualification.Requirements- Commitment of at least $50,000 in equity upfront- Experience as a GC on multi-family projects (including references)- Strong track record of quality, efficiency and safety- Located in Southern CaliforniaPlease PM me to discuss further.Best,Gene

I'd be somewhat more willing to stay in it if the negative cashflow was minimal, but I'd probably lean toward selling it especially with $100k in equity.

In other words, if I have, say, $200k in equity, when I do this deal does my equity position go to $180k, or $0k until the debt is satisfied?