In addition, anyone running a significant rental property business will have millions of dollars in equity anyway.

The traditional explanation of a combination of high consumer and business debt, ill-regulated markets that permitted malfeasance by banks and investors, growing wealth inequality, and natural disasters such as the Dust Bowl and 1926 Miami Hurricane creating a downward economic spiral of reduced spending and production are also offered as alternative explanations.

This came up in a situation where two people might be lending to one borrower, and they want to be in equal position, rather than one having a first and the other a second.

Because it is simply a ratio of the property's annual net cash flow and the initial investment, it does not consider the changes in equity that happen with amortization, one of the most salient aspects of investing in real estate, unlike what is obtained using a cash-on-cash return with equity analysis.A reasonable client recently rejected a potential deal based on the disparities that exist between what an online buy and hold calculator showed for cash-on-cash return versus my analysis, which showed a 4% improvement in ROI by taking principle reduction into consideration.

Are you capturing 20+k or 10-k in equity.  

VA loan is a great option for owner occupied AND you can even use it on a multi unit property as long as you live in one of them.  3. as far as "tying up" $15K in equity - that would only reduce your payment by around $70 a month.  

That's short term income from flips along with built in equity and growth with your primary residence. 

My response (with a little irritation) is normally something like “You mean other than my $30,000 in equity?

In 15 years you'll have made ~2,800.00 per month in equity that you can now cash out on or soak up that actual profit for a while until you want to sell.  

A friend of mine is doing a 40,000 sq ft one in Texas and the built in equity is about 2,000,000 when exiting at a 7 cap to a hold investor.Throwing a house up to make a quick 50k in 4 months doesn't sound like that bad of a return especially with 10% down as it is not much.J Scott are you getting the same 10% down as typical with what Jay H is mentioning??