With buy and hold investors are they looking to buy with built in equity, and or improve value to refinance get back equity, then rinse and repeat.

The ultimate goal should be a growth in equity over time.

Like I mentioned earlier the Seller would have $2,600 in equity.  

That includes 2 personal residences valued at over $1,100,000.00 in equity combined, 5 condos in San Diego, valued currently at $1,500,000, 8 single family in Ohio valued at $300,000, those have no mortgages.

My philosophy is simple, buy for next to nothing, use this built in equity to renovate the property to a high trouble free level.

We’re talking about the looming bankruptcy of California, of course, and of at least a few more big-budget states whose books are in equally disastrous shape, including New York, Arizona, New Jersey, Nevada, Rhode Island and Florida."

LLC A may hold 10 properties valued at 1MM, but which are leveraged at 90% LTV leaving 100,000 in equity that could be attacked.

Basic business law, if your contract is not valid it cannot be enforced, if it can't be enforced it doesn't give you any benefit at law or in equity.

.$17,000  roughly in expenses (minus your CapEx because I'm including that as upfront capital and using you're numbers)$39,160 in NOI.If you're mortgage numbers are right than it's $16,668 in Debt Service a year$39,160 - $16,668 = $22,492Now let's figure out rough equity neededFigure 30% of purchase (70% LTV): $274,500 x 0.3 = $82,350$82,350 + $84,000 (CapEx) = $166,350 in equity neededCash on Cash Return: $22,492 / $166,350 = 13.52% a yearRough Sale Price: $39,160 / .10 (10% Cap Rate) = $391,600$39,160 / .08 = $489,500$39,160 / .06  = $652.666.66So what do I take away from all this.

I would rehab to a probable appraised value of 650 to 700k which would give me about 300 to 450 k of built in equity into these 3 properties.