This means that someone who makes $43,000/year would now eligible to buy this room condo, and have access to a vehicle through which to build equity in an asset as an alternative to paying rent. 

I will explore the refi avenue to access the equity.

Like you we had 3 teams of two door knockers  2 for safety one women one man.. and we door knocked every NOD in our 2 mil MSA  all to boil it down to if we were very lucky to get 2 to 3 deals a month.. now we were a little different I only would buy very high equity deals.. and we leased back .. because as you state 99% don't want to leave.. 

My name is David Hausner and I recently purchased a Single Family Residence with LoanGuys.com.

Bank a few doors down from my residence didn't ever foreclose on a property.

$400k equity is producing $1600/month cash flow for a return from the cash flow of 4.8%.  

Or would it be the total equity - so the difference between 450k and remaining mortgage of 120k?

Investment Info:Single-family residence fix & flip investment.

Quote from @Khon Kounbandith: Investment Info:Single-family residence fix & flip investment.

Real estate purchase using reasonable leverage, at todays interest rates, will build up equity through amortization.