They say they buy properties that need a little improvement to get some built in equity. 

I have over $200,000 in equity in my house.

@Sean Dougherty if there is $250k in equity chances of negotiating are very limited unless you are cutting a check to them for full payoff - then yes they may take a slight discount.

The only way to build in equity is to end up with with a finished property that appraises for more than you paid for it.Do this by getting a deal on the land or a deal on the construction costs.Maybe doing some of the finishing yourself to save on labor.Talk to an appraiser about what a property would appraise for when completed with certain finishes. 

When you initially buy the property, at 20% down, your cost to buy the property is $20k and what you are buying is $20k in equity, but the value of the property is 5 times that = $100k. 

.$10,000 Down payment means this will be a 17.44% Cash ROI Year 1.But you should gain about $6,332 in equity accrued.  

I have a rental property that used to be my primary residence up to a year ago.I have over 50% in equity on that house and would like to tap on that equity without having to refinance my sub 3% mortgage.Do any investors here know any lender in the DFW, Texas area that would open a HELOC for investment properties?

B debt of 1.6M at 3.43% interest and 8 years left.Would this mean that there are approximately 6M in equity and would the buyers price be the 6M in order to assume the loan?

Also, the extra money you'd have to bring in equity may affect you're cash on cash returns and potential sales profits as well.Just something to think about if you haven't already.

They usually want you to have 20% left in equity so it is an 80/20 LTV.