Will a lender even be willing to wait that long for a stake in equity? 

Thomas Stanley, in Millionaire Mind, says most millionaires have only about 20% in equities of public corporations.  

My girlfriend has a house with about $500k in equity and divorced a few years ago.

They owned hotels and had about 6 million liquid and another 5 million in equity assets.

A 5k new roof doesn't necessarily add 5k in equity to a house you paid 20k for whereas in an A neighborhood your rehab leverages the value to get into a whole new class of retail buyers.

The house has $40,000 in equity (refinanced), and has positive cash flow.Real Estate Currently:Remodeling a 3000sf 4bd/2 1/2ba on 10 acres (has a 2 1/2 car garage and office as well). 

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.

I generally try to get a $2 in equity for every $1 in cash paid up front.

“The act or process of redistribution or an economic theory or policy that advocates reducing inequalities in the distribution of wealth.”As it relates to business or income I suggest going to business dictionary.com and checking the definition.