So I understand that ROI is your profit (income-mortgage-expenses) divides by total initial investment (maybe down payment+closing costs).So let’s say I’m renting it out and building equity, how how does equity come into play.

I have some questions about how our profit/ payment structure is setup, here are the details:--- 4 Owners in an LLC taxed as an S Corp--- Myself and 2 other people have 30% equity ownership and the fourth has 10% equity ownership.Currently we have agreed on that the GC/ my friend/ business partner who is a 30% owner, gets paid every two weeks an hourly wage but that payment is deducted out of his profit he receives at the end.Should these hourly wages not be deducted from his profit and he makes profit plus hourly?

How do we figure out how much equity his labor and materials are worth?

But then a banker today told me to refinance my home and take it out of the equity.

How much equity could I be looking at for the add ons.

Now I concentrate on being the visionary in the company while having others do the implementation of my "Vision".As I am typing this, I'm watching my VA's on a separate laptop in my office skip tracing high equity foreclosures.

I want to pull equity out of the rental and use the cash to put down on another.

The reason being we are wanting to convert from Traditional SOLO401K to ROTH SOLO401K and we would like to offset the tax hit of that. 3) Our thought is this. 2 4 Plexes worth about 500K with 300K owed on them so about 200K of equity we would have to pay tax on upon converting.

One thought is loan payoff, but keeping home equity in reserve for emergencies.

Being military we don’t have a lot of W2 income to work with so maybe building some equity and liquidating will work well, or maybe doing the BRRR thing will work better.