She can be an equity or debt investor.

(this would put me at about 58% LTV and keep enough equity in the home to hedge vacancy and a downturn in the market.2. 

Also, in step 3, is it possible to us a home equity line of credit?

Is there a certain equity % that LA investors use when looking at property, since the values are much different here then other cities and counties?

@Darryl JacksonHow much you need can depend on many factors , the purchase price of the home , the rehab costs etc.Also if you are going to pay all cash or leverage ( hard money or private money loans etc ) If you don’t own your own home I’d suggest doing a live in flip or house hack as you can take advantage of low money down loans like an FHA loan for 3.5%Many people have used this as a way to start out and gain equity that they then use for other deals .It’s possible to do deals without your own money if you do a joint venture type deal but could be hard to find someone to partner without experience, might have to give up more than half the profit but still better than no deal .

Also, any advice on a future strategy i can do with all the equity? 

They are most likely not cash flowing, probably it is only equity pay down they are getting and appreciation as added bonus.

I'm considering 1. selling a property to diversify versus just 2. not buying any more real estate and investing only in Index Funds and Bonds until I get to the asset allocation of 50% real estate 50% equities and bonds, however, because of my substantial equity in R.E. it could take 10-20 years to get to 50-50 without selling a property even if I'm investing 50% of my net income.

Market is hot and while other cities have less favorable returns, higher purchase prices .

Hi everyone, I'm asking for some help with my awesome issue of having a bunch of equity in my house.