The only real benie is the month to month increase in equity as the mortgage is paid down.In my case a mortgage and ownership hasn't made any sense as I live in mid town New York City.

In year 8, we have the option of tapping $800k in equity from $1.3M principal pay down if that's the route we decide to take.

How much above and beyond your repair costs do your repairs add in equity?

If the property with an ARV of $200K is only costing you $56000, why do you think this deal does not work when there is a potential 257% increase in equity after the rehab?

 Steven, it has a low ROI because you have full equity in it, i wouldn't sell it. the property cash flows more than an average SFH ( average is about $400, some even get less or more). the ROI will change once you pull the money from it with a HELOC or loan. lets say you pull out 75,000 @ 4% HELOC ( usually they are based on 20 years ) your payments will be about $450 / month, you would still cash flow $200, the property is still yours, you now only have 35,000 equity in the house, your ROI will change based on the drop in equity you have in the house, and maybe the house will still appreciate ( which i never bet on) but know you can buy more property that will cash flow. from what i am guessing there are probably houses that go for 75,000 where you are buying, down payment would be 15,000, you could buy 5 houses with that 75,000 of equity you pulled out. just something to think about.

Here is a Link to a short description of both. if you will only use a small amount to put down as a down payment then i would us a HELOC, even if you can pull out 100,000 in equity, you do not pay interest on it until you use it. would you want to pay 3.5 - 4.5 % on $25,000 ( usually broken into 20 year term) or 4% on $100,000 over 30 years ? 

Or just stick my head in the sand and be happy with my purchase already  (BTW, my first mortgage is a 1 bedrooom condo in Queens that was under water when I first started my mod. but has since balloned to bing +50,000 in equity with rising home prices.  

Same remodel in Glendale adds $25k in equity, where in Lancaster it adds $10k in equity.

2) What will you be gaining in equity each month?

So even if there is no positive cash flow I essentially get paid 3k in equity a year assuming that holds to rent the house, while picking up a second home in the process.