The loan isn't on credit, which helps the DTI.Just make sure the lender doesn't make you sign an Equity Pledge Agreement at closing.

I never knew that about the 'theft of equity' and the responsibility that would come with that.

If you are comfortable going through the building process and have a builder that you trust you would probably get the best return by building on the lot and then selling and deploying that equity that you have now built into another asset via a 1031 exchange.

Once I have located such a property, I buy their property for below market, (instant equity) no bank qualifying, no credit checks, by offering to take over their loan and make their payments for them.

Im about to start shopping around for a HELOC to Tap in to a rental property with a good amount of equity I'm looking to close within in a month and I was told the online companies can close faster.

If B, then make sure that you are heavily insured because you are acting as a GC.Also most states (like Arizona) will not allow a homeowner to act as Owner/Builder on a property that they are planning on renting, only their own personal residence.

For example, do you already own your own residence? 

👇Debt, when used correctly, is one of the most powerful benefits with real estate investing.We can take $3.5M of investor equity↓And purchase a $10M apartment community.

Every state and county are different, but once folks stay in a residence for 30 days or more, they will have certain rights that could prove cumbersome.

I’m in the equity zone on my 4 plex to do a 1031 exchange and use that equity to buy a smaller apartment building.