Will I have instant equity to tap into?

[Benjamin Pifer]

I'm looking to buy a single family home to rent. It's tax assessed at $52000 but is for sale for $38000. Say I buy it for $38K with a 20% down payment ($7600) leaving a $30400 loan. If a bank will give an equity loan for 80% of the value, does that mean I'll immediately have $11200 (52000X.80=41600-30400=$11200) of equity to take out if I want it? Is there something I am missing? thanks!

[Jon Holdman]

No.  Tax assessments have only a loose relationship with the market value.   The sale is a much more reliable determinant of value.  No bank will lend based on tax assessments.

It is possible to buy a place, improve it, and then get a new loan based on a new value.  That value will be determined by an appraisal.  You normally have to wait at least six months to do that.  And you will almost always have to make improvments.