That means you must have 25% in equity invested in the property either through cash or appreciation.  

So you have $100k in equity, you take out the equity for the next brrr.

Hey BP, I have 250k in equity in my primary residence and want to get in to the rental property game for cash flow.

But I am currently remodeling and hoping for quite a gain in equity.

While it seemed crazy to me that this guy was willing to sacrifice 30k (at least) in equity just for a quick deal, he was absolutely elated to have someone that could come in, take control of the deal (since he has never done it before), and get him out from under this house.

Essentially this would be akin to using a HELOC in a similar manner as a truth-in-equity hack.

But bangs out great returns anyway, with great built-in equity to start.

To my way of thinking, the only properties that are correctly called foreclosures are being sold on the courthouse steps by the Trustee, Master-in-equity, or what have you.

There are many homeowners with hundreds of thousands of dollars in equity that can trade up. 

But it's in a top location with excellent school systems, etc.I will have at least 150k in equity after completion.