@Dev Horn Lets say a homeowner has an untapped equity line of credit for 200k and the home is owned free and clear with a value of say 250kdoes list source adjust for a situation like this?

That's about $11-12k in profit per year which ends up being say a 18% return each year off of the original $65kEx 2 (Calculating compound returns): $65k * 1.0635 ^ 30 gives a number in the low $400k range so the compounded return of 6.35% is slightly lower than stocks at 8-10%I'm having trouble determining which method to use in evaluating deals and evaluating real estate vs. stocks since real estate has so many other factors like liability/your time/hassle/needing big chunks of money when stuff goes wrong/tax benefits/etc. whereas stocks are an easy 8-10% compounded returns w/ no work and no liability or anything...Any perspectives on any of this are much appreciated!

With that said, you need to know 100% what the contract will say. A

Dave Ramsey would say a job and reduce your expenses.

It's rare to find a deal that has nearly 50% equity built-in, and personally, I think it's probably not true that she can purchase for $50K and immediately resell for more than $70K.Too often, people will say, "As-is, it's worth $20K more than I'm paying for it." 

There are so many variables...there's no way to say a concrete yes or no.Care to share what the purchase price of the property and expected cash flow is?

Similarly, if an LLC owns only one asset -- let's say a rental house -- and it's worth $300K but there's a $290,000 mortgage on it, then that LLC is also not a likely lawsuit target.

Granted I would say a lot of agents have no clue about it or how to use it, but its there.

Say a water tank lets go, damages the floors and the units below. there goes your ten grand.

what is a chunk of change that is the question.makes a huge difference some get on BP and say a chunk of change is 100k others say 5 million . really depends on what your talking about.