If you were to put funds into building a stick built house, if done right, you would have some built in equity from the get.

.- Purchase price in the $130-140k range (aware this could trigger potential gift tax, looking for advice here)- Interest rate of ~7% results in P&I of $874/mo (assuming no money down, using the built-in equity), market rent in the area is $1700-$1800 for comparable properties. - Property is in good shape and only needs $10-15k of improvements.Below I've listed the financials of our joint partnership:- Access to roughly $40k in Cash- 700 & 780 credit scores- Joint Income of $300k+, $400k+ including spousal incomes - Both of us have sub 20% debt-to-income- One partner highly skilled in managing people, and plan to have him be the “people” side of the business (screening tenants, working with contractors, etc) Other is experienced accountant that will manage flow of money, refinancing down the road, financial reporting, tax, etc.Main questions:How should we joint purchase the property?

I got rid of the PMI last month and the assessment came back with 400k in equity with an initial investment of 50k. 

You see I just have 20% in equity in my 4plex which Is a FHA by refinancing  on LTV I get lower interest rates and eliminate mortgage insurance which should add up to 500  a month in cashflow.

More likely, we'll see a trough in mortgage rates, inventory balance, dollar stabilize and and either a small correction in equities or a bull run fueled by lower than anticipated interests rates, sooner. 

Example:  $100k property; 20% DP = $20k = $20k in equity at purchase...meaning for every dollar in equity you have $5 in PV1 - PV increases to $120k; equity increases to $40k; ratio of PV to Equity is 3 to 1...meaning for every dollar in equity you have $3 in PV2 - PV increases to $160k;  equity increases to $80k; ratio of PV to Equity = 2 to 1...meaning for every dollar in equity you have $2 in PVSame example but instead of keeping the property you sell it at the 2 timelines above...3 - Sell at $120k; $40k in equity is now cash and moves forward as DP on new property based on 20% DP (back to a 5 to 1 Ratio);  New PV = $200k...$80k higher than if not sold.4 - Sell at $160k; $80k in equity is now cash and moves forward as DP on new property based on 20% DP (back to a 5 to 1 Ratio); New PV = $400k...$320k higher than if not sold.Same example, but selling properties every time there is a doubling of the original equity at purchase...6 - Sell at $120k; $40k in equity is now cash and moves forward as DP on new property based on 20% DP (back to a 5 to 1 Ratio); New PV = $200k...$80k higher than if not sold.7 - PV from #6 increases to $240k (which also doubles the original equity at purchase of $40k to $80k)  Sell at $240k; $80k in equity is now cash and moves forward as DP on new property based on 20% DP (back to a 5 to 1 Ratio); New PV = $400k...$320k higher than if not sold.Now, if you had a total PV of $400k, instead of $120k, how much more CF do you think you would have?...

In addition, if the foreclosure occurs after a significant amount of the principal has been paid off (or the property has appreciated in the meantime), you may end up taking back a property with some built in equity and then resell it on another note.

ThanksAmod Sell it.  370k in equity, minus CC is at least 300.  300 as a 20% DP = $1.5M in PV (not 410k). 

If you're in an appreciation market (which 80K doesn't sound like it will be but you never know), in 10 years, your properties will have doubled so now you have a $800K gain in equity and all the $180 *10 = $1800 a month you collected which is ~$21K/year or an additional $210K of cash flow you brought in.

I went a bit overboard, but market helped and I’m sitting on about 120k plus in equity, but spent 70k on reno.I refinanced during covid and took about 20k for my next project with hopes of building an ADU in the back.