I am closing on place this week with a lot of built in equity so I might hold it as a rental to help generate cash for new flip repairs, if I can find one anytime soon after this one.

So where a bank might lend you money at 6% on a rehab deal, the lender does not participate in equity capture.

I had one client take over $300K in equity and they were able to increase their cash flow 50% or more.

If we sold the condo we would have close to 300,000 in equity but would lose a positive cash flow.

Here are the financials:INCOMING $$ (RENT):$1200/month x 12 = $14.4K per yearOUTGOING $$ (MORTGAGE PLUS HOUSE EXPENSES):$1550/month x 12 = $18.6K per year NET = - $4200 per year ($350/month)With those numbers alone, it would appear that I should sell ASAP...but...if I look at my mortgage statements, I'm building $800 per month in equity, which works out to a positive net gain of $450 per month (+ $5400 per year).The intangibles?  

So you're walking in to 30 to 40k in equity right off the bat.

The other question here is Does you mother need that $56K in equity to have a retirement?

In addition, if this Agreement is terminated pursuant to this paragraph, Landlord may, at Landlord's option, declare the entire balance of rent payable hereunder to be immediately due and payable and may exercise any and all rights and remedies available to Landlord at law or in equity.

Plus, it was a great cash flowing area as evidenced by 8 single family I owned there for well under $30,000 each, that cash flowed $400.00 each, after all expenses, including $150.00 reserves per month for cap ex type stuff.Sooooo, now I have $10,000 tax deferred cash flow per month and 5.5 million in property and 2.5 million in Equity and 87 front doors!!!

These businesses often compete directly with businesses that are subject to the corporate tax, with the differential in tax treatment creating potential distortions and inequities.