Equity – the monetary value of a property or business beyond any amounts owed on it in mortgages, claims, liens, etc.
Generally the “flipping” or “buy, renovate and sell” approach to gaining equity will add $50,000 – $60,000 worth of value to the on sale of the home when you spend roughly $30,000, further the same method can be applied to rental properties or the “buy, renovate, hold” method, with the $30,000 quick renovation adding $50.00 – $60.00 extra rental income per week.
This method will generate instant equity about 90% of the time. It is tried and tested and most importantly, it works the downside is though, that it does require a lot of time, skill and expertise on the part of the investor and a good understand of building matters.
A word of – be careful to not let the cost of the renovation blow out otherwise the investment will not be worth the gain, or lack thereof. Be sure to forecast these costs correctly and give yourself a 10% margin for error.