He gets out of trouble and pockets $40K (I don't know if there is a 2nd or 3rd position or back taxes at this point) and I get a house with $30K in equity.

That would give me a quick $110,000 in equity.

The owner bought in Apr '04, and the big run-up in appreciation happened from then to about Aug '05, so the combo of finding a seller who wants nothing to walk away from it, and was purchased before the run-up in equity (plus is in a popular area) is very tempting. ...I know there's value there, I just don't know how to best make money off it.

Some i worked out with $40k in equity on a $100k home to fifty cents on the dollar.

You would be hard pressed to find a really good tenant-in-common property with $150K in equity; it is possible, but not easy.

Cash flow of about 700/month and 8k in reserves for expenses and 50k in equity (i love my equity)Any other floridians in here???

I am assuming that we could sell the condo after the two years are up and hope that the property gained in equity. 1)I keep on asking myself what I am missing.

I have about $300k in equity in my own home and I rent out my 722 square foot, single room guest house on a month-to-month lease at $890 per month.

I can't even get a HEL on the other property, even though I have well over 35K in equity in it.

But then I read that even though your property is going up in equity, you can claim "depreciation" of the building each year and lower your taxes.The last thing I am confused about is that, seeing as I live in S.Calif....you cannot get a 4 plex here for less than a million dollars.