By my own estimations I have added 30-40k of equity to the property (and some of that was naturally occurring with our current real estate market being inflated).

I have made some estimates on cost, and I have already visited the site with several different contractors to affirm my thoughts on Rehab. 

Waco,TXThis week, I bought a property at a county tax sale with estimated cap gains of 100k if I resale the property now.

I can't seem a large benefit of REI in a case where you have to put 20% down in an average market.Ex:20% on $500k move-in ready duplex where about $1k cash flow (ideal scenario)Assumptions - 6% housing appreciation, Stock 6% appreciation (conservative estimates)Profit- House appreciation 6%/year- Mortgage paydown and it's 6% appreciation/year- Cashflow invested back into mortgage paydown+/- tax deductionsExpense- interest payment, taxes, home insurance, maintenance ~ roughly 1k a/f deduction (conservative est, probably alot more)VSOpportunity Cost- Down payment 20% = 100k in mutual fund 6% return/yr- $1k/month expenses that could be contributed to mutual fundYes there are still alot of variables- housing and stock appreciation/return will vary depending on location/time/stock- did not exactly calculate out the tax deductions / expenses but made a conservative estimate in favor of REI- did not include time and fees dealing with REI transactions vs just working a few more hours at my jobWhat i'm seeing is that in a scenario where someone will not be building sweat equity or finding a crazy discounted deal on a property and going through a conventional 20% in an "average market", the argument doesn't seem as strong for REI vs mutual funds/stock - they seem to be pretty close if you take into account the variables mentioned above.

Based on current NOI, expenses and estimated cap rate, the property based on our calculations should be worth $339,000 out of the gate.

Also going to need an estimated maintenance and capex costs to calculate COC.

No matter what option you decide to proceed with, I would recommend keeping an eye on the estimated value of your home and refinancing once you think you are close to 80% LTV.

I'd say we have at least $360,000 in equity in it as I write this (based on estimates from Zillow, Redfin & realtor.com).While we're planning on increasing the rent for the next term if we keep the property, I'd like to learn how I could leverage this equity into substantially more monthly income with little to no out of pocket expense and no capital gains taxes.I have no experience with loans other than FHA or conventional on first or second homes, although I'm vaguely aware of alternative financing methods (asset loans, etc).Any advice on how to turn that equity into substantially more monthly income?

Total all in cost I am estimating to be about $1.1M.

The property value is estimated at $600K - $650K.There are clearly pros and cons to each side, but any strong feelings or advice from the group would be appreciated!