The rent to value of the property will not cover your expenses.Additionally the 200K in equity has a opportunity value of 10% which means $1666 must be deducted from the $2400 monthly rent to pay for your dead equity.

For example - Jonny owes 80k on a house valued at 100kJonny has a VA loan on the house and wants to refi to a conventionalCan Jonny take the 20k in equity he has in the house and use that as the down payment for the conventional loan?

Tell them that the rent for using the land comes to $2,100.Tell them that you'll sign a promissory note for $2,100 payable in equal quarterly installments over 3 years at 0% interest.Split the $2,100 between rent and a promissory note.

I did find a lender after many turn downs  and did a cash out on my primary residence at regular market interest rates and purchased a great cash flowing foreclosure with built in equity using the amount I cashed out.. about 20 months ago.

I thought in order to refi on an FHA to a traditional mortgage you need to have 20% in equity after refi but it appears once you hit 20% you can refi and pull all your equity out!

I have about $250k in equity in a couple local investment properties and a HELOC of $100k.

That's not a good use of my funds to only make $10K on a drawn out foreclosure where the borrower is fighting me to protect $50k in equity.  

So, I've been living in my SFH for about 8 years and was fortunate enough to land a price point that has since built up approximately 80-100k in equity depending on the comps.  

So your net worth will be increasing per month by 222.  222 x 12 x 20 = $53,280 (in equity)Your total net worth increase once 50 = $113,280One your primary home is paid off, use that equity to use as down-payments on your dream homes. 

We were fortunate enough to be in the location that return us (on paper) with good appreciation but not so good cash flow.I am considering selling couple of our rental that would should us about 450K in equity and re-investing that into multi-family units.