LLC A may hold 10 properties valued at 1MM, but which are leveraged at 90% LTV leaving 100,000 in equity that could be attacked.

Basic business law, if your contract is not valid it cannot be enforced, if it can't be enforced it doesn't give you any benefit at law or in equity.

.$17,000  roughly in expenses (minus your CapEx because I'm including that as upfront capital and using you're numbers)$39,160 in NOI.If you're mortgage numbers are right than it's $16,668 in Debt Service a year$39,160 - $16,668 = $22,492Now let's figure out rough equity neededFigure 30% of purchase (70% LTV): $274,500 x 0.3 = $82,350$82,350 + $84,000 (CapEx) = $166,350 in equity neededCash on Cash Return: $22,492 / $166,350 = 13.52% a yearRough Sale Price: $39,160 / .10 (10% Cap Rate) = $391,600$39,160 / .08 = $489,500$39,160 / .06  = $652.666.66So what do I take away from all this.

I would rehab to a probable appraised value of 650 to 700k which would give me about 300 to 450 k of built in equity into these 3 properties. 

Now I have over 5 million in RE and 2.5 million in equity, since my first little condo purchased in 2011.I now have $120,000 tax deferred cash flow in my pocket every year and as a teacher I make $60,000 a year at a Catholic School and as an adjunct Professor at a community College here in San Diego working 60 hours a week and my wife makes $20,000 as a special Ed aide in the classroom in the public schools in San Diego. 

However, if you plan on selling after a couple years of cash flowing, the 70-80% the bank will let you refi of the 40K+ in equity along with the equity from debt paydown over the 2 years could provide a nice line of credit for another home.

But yes, in general its yours or someone you know's cash.Yes in the example: 50k house, you buy it with 50k cash, it appraises for 80k, you get 50k cash back out, have a rental that cashflows every month AND have 30k in equity, rinse and repeat

Its conceivable that nothing changed with your tenants, the income stream, or expenses, just one of the 10 members buys out another member for her $50,000 in equity because she is going through a divorce, or some other similar situation. 

Each year I hold  I gain about 7K in equity and it goes up each year after that (8k, 9k, 10k etc).

In exchange, he is willing to give me 200K in equity and promises to continue to pay PITI.