. $200,000 in equity in all these houses now.

What if they cash in on the built in equity of a good deal, as oppossed to the appreciation?

I agree you want 15% or more in equity, but not that the loan payment should be equal to the market rent, otherwise, you have negative cash flow.

In the second case, you have an instant $48K+ in equity.

If you don't need the cash flow, then you'll ALWAYs be able to buy more properties, have less invested in equity, and benefit double or triple in appreciation and creating real wealth and pay less or no taxes.

Or is it good if Im breaking even or just paying a little each month, because in theory I have made 70K in equity that can be used to start another rehab project.

In the first case, you have an instant $30,000 in equity.

On a conservative side I have $600K in equity but only have enough cash on hand to go about 6 months if they default.

If you can buy at a discount, you have some built in equity if you need to sell.

Bottom line is I saw this as an opportunity to get into the rental market with out having to tie any cash as well as winding up approaching 200K in equity when the projects are complete.