@Michael Noto is correct in suggesting to get better tenants in you'll benefit from extracting the bad ones.  

You will really learn a lot.And to suck up to Brandon Turner and Joshua Dorkin just a tad, they keep it light and just the right amount of humurous- all while extracting tons of great info from their guests.

None are great deals, though, because there are other parties extracting some of the profit out of the deal.

I went for a little free education but did not extract NOTHING useful from this. 

The way I was able to purchase my 2nd and 3rd property is extracting cash flow from the 1st and with additional savings I had from working my job at the time.

It's your job to extract that number from them and not to pay more.

Where is your "extractable" equity best used (after selling costs, expenses, etc)?

I could use that bid to extract costs for kitchen or bathrooms.

Ideally the property has positive cash flow (both units are recently rehabbed and therefore should get top of market rent) and you have extracted virtually all of your investment money.   

More specifically I am trying to chain purchase rentals by extracting the equity from the previous one.