Including ANDRecord the purchase, closing, settlement, loan costAny improvements DepreciationWhere did you get the money from to pay for it At the end what your equity isAND it is pretty simple as long as you track your each and every penny:money inmoney outthe money you owemoney someone owes you= equityOnly possible if you track all on Accrual Basis. 

I have gained substantial equity but don't want to pay capital gains and have been in the home for a short time (about a year).

I bought a small high equity absentee for Memphis and nothing came but a few contracts.

They require the home pass inspections and are usually considered to be less favorable to the seller.

If there isn’t significant equity value, I wouldn’t bother, as getting an ADU completed in this city as a royal PITA.An ADU can’t convert to condo btw. 

I am definitely going to be keeping the duplex, as the income it will produce far outweighs the equity I have in it currently, but that now means I have to figure out property management from afar.  

@Jonathan Woodruff speaking only for myself, one thing that drives me nuts is people who are typically drawn to the charm and unique qualities of an old home, and then whine about its lack of modernity--- modernity which, by the way, will likely fall out of favor again in a decade or less.

That means you have 120k in free equity from the start...that you didn't pay for at any time. 

I make more off of condos, but use the equity in my rental homes to grow. 

Again, I have 100% equity in the house.I was asked why I don't get a home equity loan and the reasons are 1) My credit probably shows me to be a "ghost" since I have not had any sort of credit in the last 7-8 years and 2) I have worked for myself for the last decade and my income is usually in cash so, it would be impossible to prove any consistent income.I never would have thought that getting a short term loan under my circumstances could be difficult to put together.