You'll only be able to cash out a certain percentage of that existing equity.

@Travis Boyd Outside of instances where FHA or other extremely advantageous financing options exist I am a proponent of the LLC for investment real estate although the liability piece is overstated.

The PM in my mind has the right to lay out the facts as they exist..

@Guenevere F.When I started in rental property investing, I found it crucial to set clear goals, leverage existing skills, and focus on scaling gradually.

@Brett Jurgens  What is your current financing terms on the existing loan? 

There are so many gurus online pushing 0 down loans, and it simply does not exist if you have no experience, assets, or reserves.

When they do, they are typically covered by insurance and settled outside of court.The odds of a landlord being sued for a large enough amount that it eats up their insurance, the equity in the investment, and their personal assets is almost non-existent.

we did that except instead of renovating it we knocked the existing home down and built a new primary. right after we were completed we had $500k in equity as we acted as the GC on the project. 

Existing mobile home parks are in high demand for all investors large and small.

Right, now, none of that  honor exists, except in your own mind.