Equity Created: $550,000 ARV - $409,000 loan balance = $141,000 in equity.Cash Flow: The property rents for $2,950/month, covering all expenses and generating slight positive cash flow.HELOC Potential: Post-refi, I can secure a HELOC up to $86,000 (90% LTV) to fund future investments.

Most 3BR turnkey homes are closer to $285K and upwards, so with money more expensive, and minimum rent of $1800... possible break even scenario.

Cash-flow is for "keeping the lights on" as in covering operational expenses to defend against any need for additional capital investment. 

Where do you live?

Hi Devin, Have you ever considered that instead of America needing smaller homes that are more affordable, that America needs more higher paying jobs so that people can live the actual American dream versus having to settle for less and less and less (Has George Carlin pointed out in his classic speech about this). 

I currently live in San Diego, Ca. but have been looking in the midwest, mainly Iowa, Indiana and Ohio, for properties. 

I live in Lanham, I am new to Real Estate Investing and looking to connect with local investor.

That was short lived!

I created an LLC to collect rent and manage any expenses related to the property. 

Your expenses are not a reason to increase rent!