Your barely over 11% in equity before rehab. 

I would like understand this concept correctly.If I purchase Property A-Duplex for 70K and it is worth 100K and I put 10K down, I will then have 40K in equity in the property upon purchase. 

With an average sold price last month of $547,000...a 5% rise in value is going to yield an investor almost $30,000 in equity.  

In 15 months was able to create over $4 million in equity on my 200+ unit deal and my investors were very happy with their returns.

The house appraised for 315k and I bought it for 270k so already have 45k in equity. 

Hi @Nicole CareyI think the 3% carry back is a pretty small margin that wouldn't make too much of a difference in making the property cash flow or a huge difference in equity if you are going to hold onto the property long term.

There is actually 70K in equity, I should be able to pull out the 50k with 20k still in the house. 

As an investor in equity your risk is the greatest because every other tranche of capital is entitled to get paid before you.

(real estate does have the upside of depreciation, appreciation, built in equity etc. but I dont think that is enough)You need leverage to make 50-infinite% returns.

(So they have some built in equity)The rent from rentometer.com and round down to the nearest hundred to be conservative.