Based on what you've said it doesn't appear you're looking for  tax write-off so what you'd wind up with is a a cash burden chasing presumed appreciation and unless Costa Mesa is an on-fire seller's market you'd probably not experience a great leap in equity in one year.I own rental property that generates income monthly and nets me about $30k per year as an income supplement.

My wife plans to get back to work to help generate us more cash to eventually buy a property.After a long winded intro, we are in a situation where we have roughly $75k-$100k in equity if we sold our home.

 $3,000 X .12=$360 rent increase / .005 PTR ratio is $72,000 increase in equity.  

Because I will gain about 30K in equity on closing, and appreciation in that neighborhood, if it keeps up, will give me 60% returns on my money invested alone, not counting principal pay down and cash flow, which are roughly 11% after expenses.

Q2: When you do CoC calculation, especially for the next 10+ years, you omit growth in equity (property appreciation + reduction in loan balance).

Hello,Real-estate investors benefit from their investment with cash-flow and with the build-up in equity.

I currently do not have 20% in equity.

Im a buy and hold investor, a strategy I'm bringing over from my experience in equity investing.

So you get a return by building new and have built in equity in the property and can sell in the market for a lower cap if you want or hold for cash flow etc. 

. $110k in equity copmbined or $55k eachThat NOI is subtracting the mortgage payments.