There is a reason investors want to put down the least amount as possible on a property, it's because the less you have laying dead in equity, the more you can put towards more property, but it all boils down to your debt tolerance, if paying it down helps you sleep better, then do that but if you want to make a better return and keep your equity stakes low, buy more property.

If I purchased with lease a house for 200k, and 7 years go by and 100k in equity, can I purchase the property for 100k then retail it, or, could I assignment my lease contract to another investor?

(She is also pretty well known in this area.)We will both put in equal amount of cash to purchase property, and then get a HML for renovation costs. 

started on 14k - brought 4properties in 13- sold two to make enough to get one Reno budget- sold that last year for highest price achieved in area  -brought two more- doing another Reno now- - in two years made enough to live off on rents and over 300k in equity- all from 14k and a tone of hard work, picking up old furniture off the road and turning into "rehab addict" like houses!  

What I am trying to understand is;If I rent it for say 5 years and then sell it will I have to pay taxes on the capital gains tax on the original 100k in equity as well as the additional increases or can I somehow reset my costs.For instance if I move the house (sell it) to my LLC and then rent it can I protect the 100K in equity that I currently have from capital gains?

They will have over 2 million in equity and the end of the project and can give 1st position on the new duplex as it has no mortgage.

To get built in equity you have to take more risks and be more involved.  

I agree that having that much in equity out there can create a risk though.

You are still up $81,200 in equity plus all the income and appreciation you will ever make on the deal.Pull the money out!!!

You had $34K in equity at purchase and the property value increased $39K from from $105K to $144K, making the new equity value $73K.