This equity can be leveraged for future investments.Cash Flow Generation: By renting out the property, investors can generate rental income, which can be used to cover mortgage payments, property management fees, and other expenses.

For those who are high-income earners, we don't need extra income to be taxed at a high rate, and would rather build equity quickly.

My motivation to invest in property is to generate passive income. 

Obviously I have a ton of equity in the property, which i’ve been thinking about as using as a large down payment on a portfolio of properties or a larger property/ something that produces more income.

I'm interested in alternative investing opportunities (properties that don't involve rentals or routine fix/flip) to provide passive income and increased net worth. 

But my understanding is that's not the case with a property refinance (again, unless in excess of basis [in which case, taxed as gain], or unless your lender forgives the loan [in which case, taxed as income]). 

This is all assuming you have the income, reserves, capital, and DTI to support this route in addition to market rent being high enough to cover you.

-Offset personal mortgage expenses with income from tenants rent.

You could do a conventional investment property loan if you meet the guidelines such as having the income and the debt to income / DTI ratios to do so.

Maybe it's owning multiple properties, creating a rental income, or building a real estate empire.Starting small is just the first step towards those big dreams.