question about equity and how to use it

[blahblah]

Hi, just have a question around the equity of the property and how to use it to buy the other property

1) How to calculate the equity of properties
Value of the properties - the balance in loans OR
Value of the properties * 80% - the balance in loans

2) How to use the equity
I heard that the equity could be withdraw to pay the cost and deposit on another property. Am I correct?
For example, say the equity is around 600,000, does it mean 600K can be withdraw, and buy 2 properties at price 300K with NO loan?

 

[Propertunity]

1) How to calculate the equity of properties
Value of the properties - the balance in loans OR

Yes this is the equity

Value of the properties * 80% - the balance in loans

Yes this is the available equity (the lender won't let you use it all - they want some of your own money left in the property)

2) How to use the equity
I heard that the equity could be withdraw to pay the cost and deposit on another property. Am I correct?

Yes

For example, say the equity is around 600,000, does it mean 600K can be withdraw, and buy 2 properties at price 300K with NO loan?

Yes. Or 10 x $60K deposits on 10 properties - you get the idea

 

[HandyAndy888]

Yes this is the equity

Yes this is the available equity (the lender won't let you use it all - they want some of your own money left in the property)

Yes

Yes. Or 10 x $60K deposits on 10 properties - you get the idea

Great response to a Noob question. If only every answer on Somersoft was so simple to answer

 

[Rixter]

Great response to a Noob question. If only every answer on Somersoft was so simple to answer

If only the 'search button' was used before asking would make it even easier