Now you have $400,000 in Equity!

So while you might choose to invest in debt, which has no appreciation, or you can also choose to invest in equity which does.On one hand it sounds to me like you are staying that to tolerate any loss of your money.

Compounding can help you build some additional equity, but you're going to get a lot more bang for your buck earning income right at the start of your wealth building efforts.My younger brother asked me a few days ago if he should be concerned about the recent market drop and think about finding somewhere else to put his $10,000 in equities. 

If you owe 90K and let's say for example sake that your home appraised at $200K (FYI, Zillow estimates are very suspect), then that means you have $110K in equity. 

@Ronald RohdeIts just not a typical deal for any of us.The firm will probably go from doing $10m this year in equity, to probably $40m a year in 2 years.It would seem that I should probably get some piece of that, as this relationship would definitely not exist if not for me.

Hello BP,My current situation:I live in Northern VA, I have a rental property here with about $175K in equity and have my primary residence with about $60K in equity.

They are not cash flow heavy, but they crank out 3-4% ROI in equity every year and the rent rates increase about 2.5-3.5% annually.

We can already get out $60k from the rental, keep $40k in equity plus the $500/mo cash flow, and don't have to eat $15-20k in selling costs.

From a valuation standpoint, I plan on capturing about $65,000 in equity capture due to the discounted on the purchase and improving the cash flow.

I'm a midwest transplant and I've been here about a decade, so I have a decent lay of the land.California is great if you fit into one of 2 classes:1. 20-something and single-IOW looking to "live the cali lifestyle"2. income of 250K+ (business owner, high-earning DINKs, upper management, etc-Obama definition of "rich)If San Fran is #1 in income inequality, Orange county is #2.