The reality is that having everything "paid off" makes more sense later in life when time is not on your side, but if I were you I would be looking to invest in assets that allow you to create 50k in equity without scrimping and saving for months. 

In all likelihood, you won't be able to get any built-in equity upon purchase and will likely be into it for a bit more than it's worth.

  $200K in equity is a ton on a rent property and your return on equity is terrible in either scenario.If you have $200K of equity but aren't cashflowing, you must own a house in a very high priced market. 

50K+ in equity and a cash flowing asset!

Hi everyoneI have a question I hope someone can help me with.We own and live in a two-family house in Queens NY with about 500k in equity.

Great news would be if appreciation is more than that you're making money (in equity only - still bleeding cash). 

We recently turned our primary residence into a rental, and have about $100k in equity in that property.  

So you take your yearly net of $3600/yr, divide by your $130k in equity, your return on that equity is less than 3%.I do evaluate my rentals again after they have appreciate, and I've sold 2 rentals over the past 2 years because they were no longer giving me the return I needed, and I could reinvest that into better performing properties

My intent is to stay in this home, 3 years of minor renovations and 16k in equity I plan on doing a cash out refinance, with that money I’m hoping to use on purchasing my first investment property for a flip or rental, open to opinions and thoughts, sorry for the hiatus.Chris 

What if they only have $3,000 in equity in their home, but need $11,000 to close and don’t have the cash to make up the difference?