@Veronique Leroy I would say it is possible if you force equity, hold for a few years and then sell and then average the return of the whole profit over the timeframe of deal.

But you are required to file a Schedule E in the US every year showing the total rents you received, the expenses you had against those  rents and your subsequent profit or loss. 

Lender's like to see that you are profiting at least 20-25% above the debt, e.g .a debt service coverage ratio of 1.2 - 1.25.

Hi Will in Chicago-Congratulations on having a paid off rental with 500K in equity.You are wondering what options may be available to put that equity to work and you are not interested in buying another traditional rental.One suggestion I would offer is to put some of the equity to work by becoming a private money lender partnering with an investor that would split the profits with you on short-term projects.You could turn that money over and over into the next project getting a higher return than the trapped equity and getting a lien position on the project property to protect your downside investing in a fairly passive way.To Your Success!

He still makes a profit off of the government share.

Oversimplifying it just a bit, the investor profits from:- a non-refundable option paid by the tenant-buyer which gives them the right to purchase the property within their option period- the spread between the rent paid by the investor to the property owner and the rent paid to the investor by the tenant-buyer over the life of the option- the spread between the price ultimately paid by the investor when they exercise their option with the owner and the price ultimately paid by the tenant-buyer when they exercise their option with the investorClear as mud?

@Derick Jennings House hacking is the easiest way to start and the best way to be profitable with low risk in Colorado @Koren Lavi can help you in the Denver area!

Even in the Covid era I've found that contractors are still asking top dollar for overhead and profit, making many projects unfeasible. 

this is a direct relation to lack of inventory.. new construction on many markets is as robust as its ever been.. we have had spectacular years the last 3 years of course during covid was tough with supply chains but my 500k house I am now selling for 700k and my build cost have gone up by maybe 100k.. so record profits for us.. 

With that I can flex my offer to include profit sharing if needed.