Side Note:  One of the amazing things about real estate is that this is your second deal, you mention having trouble with permits & contractors and despite those challenges you are still able to create over $31k in equity with this project!

I want control, leverage, build-in equity and liquidity.

With the deal I made, I only ended up needing to pay $10k out of pocket, and I will be getting a cash flowing duplex property, and an instant $60K in equity according to the appraisal and comparable in the area once rehab is done (assuming all goes well!). 

Or, you can spend money on a lawyer, get proper documents, get a domain, order some business cards, worry about asset protection, file an out of state LLC, get a phone and fax number, get an email address, take that next seminar, read that book, post more questions on here....Meanwhile, I ripped another $100K in equity on a wholesale property I bought and decided to keep, using a 1 page Word doc.

The best $250 I ever spent was for an older real estate attorney who provided me knowledge about a problem and a beautiful solution that made me about $500,000 in equity over 20 years ago. 

For example, if the ARV is $400K but the homeowner has $140K in equity and is comfortable living there as it is, would it be a good deal for the investor?

You would not realize any gain in equity by principal pay down until you liquidate the property.

I am thinking about selling one to make money to pay off debt which is currently the house I live in. it should bring me I hope 120000 in equity and this would help me bring down the last of my depth again.

I believe you are only allowed to keep $30k in equity in your residency only.

Property will have appreciated to $268,624.28 and with a payoff of $138,840 that leaves $129,784.28 in equity.