This worked for me :
I made a custom image component which takes in a boolean to check if the image is from web or is being passed from a local folder.
// In index.ios.js after importing the component
<CustomImage fromWeb={false} imageName={require('./images/logo.png')}/>
// In CustomImage.js which is my image component
<Image style={styles.image} source={this.props.imageName} />
If you see the code, instead of using one of these:
// NOTE: Neither of these will work
source={require('../images/'+imageName)}
var imageName = require('../images/'+imageName)
I'm just sending the entire require('./images/logo.png')
as a prop. It works!