Basically look for cash flow and growth in equity... compare that to the risk on your cost side to make sure you're covered.Where on earth did you find a bank that would fund that way... and up to 85%??  

I'm also trying to figure out how you have 5% in equity.  

He now has $8M in property, ($5M in loans, but $3M in equity).

Hi guys,I am looking to get into flipping houses but I need some help understanding if using the equity in my house is feasible.I have about $200K in equity in my house and really don't have extra cash flow to add to my monthly budget.

If the owner had some equity in the house and they wanted some cash out of it, it seems like it would be tough to tell them, "you'll get cash eventually, but i'm just going to rent it out right now" Lease option could provide a little up front cash but if they have 50K in equity and they are willing to give up 25K to get out of the situation, they are still going to want 25K.

If you paid 30K down on 3 seperate houses purchased for 80K at a 20 percent discount (you'll have to look hard for this), you would then have 3 houses with 50K in equity (150K all together) for the price of 90K.

There is no standard in modern finance for real estate like the CAPM or Fama French three factor model in equities.

I just created 35k in equity plus cash from the tenant and have a heloc at a cheap rate to pick up another one.Does this sound like a good approach?

If you moved out of your primary residence that had $200K in equity and negative cashflow would you setup an LLC?.

I have about $75K in equity.