So here are the numbers:-I have 260k in equity in a triplex I've owned for some time (I also live there)-I have a full time job earning 41 000$/year (been there 5 years)-I get rental income of 850$/month from the unit that's rented-My credit score always hovers around 740-I have no credit card debt or any type of debt whatsoever except for the mortgage on the triplex (155k left to pay)What's the most profitable way to take things from here.

The house is a new construction that is not finished. It requires 50K to finish. The seller wants 450K. After finishing the house will be listed for 849K. It will most likely sell around 800K. My credit is not that gr...

So, he now claims you have $40K in built in equity.

You now have about $12K invested in the property, if you include closing costs on the loan.You rent the place for $1050/month, and assuming an 8.5% vacancy rate (a month a year) and expenses of 40% of net income (a little low, but okay since you just rehabbed), you should see the following returns:- $40,000 in total equity created from the property ($120K valuation minus $80K loan)- Year 1 Cash flow: $862- Year 1 Equity Accrual from Payments: $894- Cash-on-Cash Return: 7.43% (not including equity generated by rehab)- Total Return: 15.14% (not incl. rehab equity or tax benefits, which are investor dependent)- Total Return Including Equity Generated by Rehab: 347%If you choose to keep the property for longer than a year, your total return will obviously drop, but you're still receiving nearly $1000 a year in cash flow, $1000 a year in equity, and still have $40K in equity generated by the rehab.Rinse and repeat...

Is it worth some time and effort to pick up $200,000 in equity and end up with a nice building that will have a significant cash flow?

That way if you had $1,000,000 in equity in just one entity and it was sued... well that could become a problem.

If you profit by $12,000 per space in equity each time you add a new home, you can sell the homes at breakeven and be way ahead. 8.

Realize that if you own $90K on a house worth $100K, it might look like you have $10K in equity.

After living in each for a couple years, I was able to add about 170k in equity to my name.

The new buyer could foreclose for 5k, plus around 3k in lawyer etc. and put 20k, for rental or 35k for resale, and have built in equity?