Maybe $100 if you pick up a worker at Home Depot, or free if my son puts in the sweat equity. 

When you get your fourth SFR, trade up to a bigger deal with the equity accrued. 

@Logan LesterLike @Theresa Harris said, you don't need 20% for the next one if it will be your primary residence.

@Zachary PetrakYou would need to refinance to a DSCR or traditional loan to pay off the private lender and seller financing.This important to get the buy price and construction costs correct otherwise you will be upside down and not able to refinanceThe other option is to partner with someone and give up equity for them to contribute funds.

Bought my first house (primary residence) in Denver, May of 2021, 3bd x 1 bath, for $525k with $85k down at an interest rate of 3.25%.

I also suggest starting out by house hacking - buying a primary residence and renting out a portion - basement, room, ADU.

Looking for advice on whether I should take out the equity, or seek another type of loan.

With built in equity .

I only have it to buy/sell my primary residence.

Investment Info:Single-family residence buy & hold investment in Daufuskie Island.