OfflineI know this question may be a little absurd but I'm unsure of the answer. This is a two-part question, If you purchase a property and if there is equity in the property how do you find out what the value is? If there is, can you tap into it to say purchase another property or rehab the property itself? I'm kind of unsure how that may work to my advantage.
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Chris
Also, if you plan to pull equity out after you own the property, know that you probably won't be able to get access to ALL the equity. For example, using Coach Drew's numbers, even though there is $50K of equity in the property, the bank may only allow 70% or 80% of the appraised value to be lent. Say 80% LTV. The property is worth $200K. They would lend $160K. Therefore if you already have $150K into it, you could only get an extra $10K out in a refi, and a lot of that would probably be eaten up in closing costs. So you want to make sure you get a REALLY, REALLY great deal to start with if you plan to pull money out in a refinance.
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