Recently sold comps are what you use.The Heloc will produce the same result.  80% of property value minus amount you still owe (80% x $600K = $480K - $477K = $3K).Therefore, currently your best option would be a LOC.As for your last question I think I already answered it.I agree that the refi may not be his best option for cash out re-finance purposes for the reasons illustrated, however it may still be worth while if he is able to get his rate and payments down significantly from the FHA rate he is currently paying.

You want to buy as little life insurance death benefit as possible for your premium.To illustrate what I mean...

Yes and no, and to illustrate that I tried to be a little snarky to at the expense of our Friends from the Great White North.In summation and in regards to the OP other people have said it -- Passive Income is a term used by the IRS to define a W-2 Income versus Investment Income.

When you have a signed contract with a seller it should very clearly illustrate that you intend to either resell immediately or put a tenant in there for a profit AND that by entering into a contractual agreement with you they are allowing you to advertise the property as needed.

LubashaMy choice of words was meant to make a point which, while you say you understand, you are not illustrating you get it.  

When they stop being team players, they stop being my customers.I think the original post was intended to illustrate that it doesn't have to be us vs. them because, as you said, we are people too, with families to feed and dreams to realize.

@Pari Thiagasundaram is illustrating the calculation for investment yield.  

WSJ article illustrates The Escape From NYC!"

If one or the other is not playing along, then inflation will not happen.Chart 3: Broad Money versus Narrow MoneyThis is illustrated in chart 3 which measures the growth in the US monetary base less the growth in M2.

I'm sure it depends a lot, but for this situation, examples would help illustrate it better.