The added possibility of a bump up in equity over night is icing on the cake.

I paid 136,000 for it, and have about 11 thousand in equity in it.

The fund will take a hit as the cost of doing business, and still keep going.With that said it makes sense to sell some assets (depending on business plan, especially if things haven't worked to expectations), to the institutional player when the market is high ( It would take years to make the money back that is sitting in equity, if we waited for rents to rise and get the cash flow.)

So if I were to find a property with an as-is value of $85,000 and I got the property for him for $50,000 then there would be $35,000 in equity.

It's building up equity over the long haul with built-in equity from buying right, appreciation and principal paydown that really builds wealth in real estate. 

I would recommend you get a HELOC based on your $125K in equity and use that to make down payments on investment property or to make cash offers and then refinance.But get educated first!

Soon to be on the market and has approx. 80k in Equity.

You can then use it to invest in equities as well as alternative assets.

But I would be willing to use our newly acquired rental that has 170k in equity with no loan against it.

Saj and I have created hundreds of thousands in equity on each of our purchases within months.