In this case, that would completely pay for purchase of property plus $8,750 towards repairs, and leave me with a free $26,250 in equity before cash flowing from tenants.

I know in this deal you didn't put in equity yourself, but if you did, I would assume the payout would be the same for the investor portion, but you'd keep 100% of the profit for your portion.  

You get rich by investing in equity appreciation in NYC then use HELOC to get those high rent ratio properties far away.

If you have $2.4 million in equity, that means you've got over $4.5 million financed.

AND Still having your 6 months of mortgage payments in equity in your accounts.

Unless the seller is going to offer better rates/termsyour trying to do a no down deal but tell the bank you have 25k in equity which you don't have since your not coming in with cash and will be writing a second note to the seller.. this would be considered loan fraud if you did not disclose this.the settlement state would show you buying the property for 65k.. and most banks will not do hundred 100% financing. now you maybe able to get a HML to do it.. and then you could do an unsecured personal note with the seller.. ( which they probably wont do)…  

Market is hot there so there is opportunity for built in equity to make brrrr numbers work.

By the time you’re 35 you should have $1mm in equity.  

If you have twnety properties in one LLC all of which have a combined $10,000 in equity, then that is all that is at risk.

If not, you don't exercise the option.Working off of your numbers above, there may be about $40K in equity in the house after all commissions/fees/taxes, making it break even (and saving 6-12 months of $1500 rent payments somewhere else).