The concern I have about that idea is that even with the $200k in equity I cant afford anything in my market.

I guess what I am saying is if we have a 5 million portfolio and would like to take out 1 million in equity it’s less than 50% of my equity.

You can do pref equity, which may function similarly to a loan, or bring in equity investors to fund the shortfall between project cost and mortgage, but generally, the lower down the capital stack (the order of priority for all the dollars in the deal) the more it will cost you, since each layer is taking more risk.

We own 16 units in San Diego and are building 4 ADU's in 2024 and 4 more ADU's in 2025.Problem(s):1) I want to buy a primary home and start a family soon, but all of our cash is locked up in equity in real estate (ok, not all of it, but like 65%).

The other challenge is that I have 100k in equity sitting on my current house and I don't know how to acces it in a smart way without selling the property.I would love to know if there is any RE investor or agent in Michigan that is in a same path or has done something simliar.Thanks all! 

Some have more than $1 million in equity while others have less.4.

.- Growth in Equity: Increase in property value over time.Cost drivers:- Mortgage Principal Repayment: Part of the mortgage payment that goes towards paying off the loan.- Interest Payments: Interest portion of the mortgage.- Maintenance: Regular property upkeep costs.- Vacancy: Loss of income during periods when units are unoccupied.- Utilities / Other Expenses: Utility costs, possibly including shared utilities.- CapEx Reserves: Savings for future capital expenditures (e.g., roof replacement).- Insurance: Property insurance costs.- Property Taxes: Annual taxes on property value.- Closing Costs: Expenses incurred during the property buying process.

I’m guessing you’re around $300k in equity.$30,000 per year / $300k is only 10% return on your equity capital.

We have a 2 year seasoned note and got a quote for resale of half what we originally lent, even though the property has about 40K in equity in it. 

Some have more than $1 million in equity while others have less.4.