Introduction
It’s one thing to talk about using your home equity to invest—it’s another to actually see it happen.
Real homeowners are taking control of their financial futures by unlocking their home equity and buying rental properties that pay them every month. In this post, we’ll break down exactly how two different investors used their equity, what returns they’re seeing, and the key lessons you can apply to your own strategy.
Example #1: Joe’s Story — $75K Equity → $1,000/mo Cashflow
Joe had been paying down his mortgage for about 10 years, quietly building up around $200,000 in equity. Instead of letting it sit idle, he decided to put a portion of it to work.
- Equity Accessed: $75,000 through a HELOC
- Property Purchased: 3-bedroom single-family rental in Dallas, TX
- Purchase Price: $250,000
- Down Payment: $50,000
- Closing and Minor Renovations: $20,000
- Cash Reserves: $5,000
Joe’s strategy was simple: buy a rental property that cashflowed from day one. After mortgage, insurance, taxes, and management fees, his property nets him around $700 per month in positive cash flow.
- Cash-on-Cash Return: ~11%
- Payback Timeline: Less than 9 years to recoup his initial investment through pure cash flow. The property will also appreciate 2-4% per year throughout those 9 years.
Key Takeaway:
Joe didn’t drain his savings—he used his home’s “hidden” value to buy an asset that pays him every month.
Want to know how much equity you can access without a credit pull?
→ See How Much Equity You Can Access with Figure.com in under 5 minutes
Example #2: Lisa’s Story — Equity Split Into 2 Rental Properties
Lisa had $180,000 in equity and wanted to diversify rather than buy one expensive rental.
She accessed $90,000 through a HELOC and split her investment into two affordable rental properties in two different cities:
- Property #1:
- Purchase Price: $170,000
- Down Payment + Closing: $40,000
- Reserves: $5,000
- Monthly Net Cash Flow: $600
- Property #2:
- Purchase Price: $160,000
- Down Payment + Closing: $38,000
- Reserves: $5,000
- Monthly Net Cash Flow: $550
By diversifying, Lisa minimized her vacancy risks and now enjoys around $1,150 per month in combined positive cash flow. Plus, she’s building equity in two properties instead of one.
- Cash-on-Cash Return (combined): ~15%
- Added Bonus: More appreciation potential across two different markets
Key Takeaway:
Splitting her equity across two deals gave Lisa more stability and multiple income streams—while still keeping her primary home untouched.
Example #3: David Partnered with Us To Be a Passive Investor — $120K Investment → $1,000/mo Cashflow with Co-Living
Some homeowners don’t want to manage properties themselves—or spend months hunting for deals. That’s why some investors are partnering directly with our team to invest in co-living properties.
Here’s how it works:
- Investment Amount: $120,000
- Strategy: Co-living model (renting by the room)
- Location: High-demand rental market
- Monthly Net Cash Flow: Our investors receive $1,000 per month after all expenses
With co-living, instead of renting a house to one tenant for $2,000/month, we rent it by the room—often generating 2x to 3x the income.
Plus, you don’t have to find tenants or deal with management headaches. We handle everything – sourcing the home, buying it, converting it into co-living, renting it via PadSplit, and paying you $1,000 monthly as an investor.
- Cash-on-Cash Return: ~10%
- Hands-Off Investment: Passive ownership with active cash flow
Key Takeaway:
Investing with an experienced team can help you generate strong returns without the stress of doing it all yourself.
If you’re interested in learning more about investing in co-living, click here.
Key Lessons from These Stories
There’s a lot we can learn from Joe’s, Lisa’s, and David’s strategies:
Use Conservative Leverage
All investors borrowed responsibly, tapping into a safe portion of their equity (typically no more than 75–80%). They left a cushion in case market values fluctuate.
Focus on Cashflow Over Appreciation
Neither Joe, Lisa, or David invested hoping the markets goes up.
They made sure the properties produced positive monthly cash flow from day one—which is what truly builds financial freedom.
Pro Tip:
Not sure what kind of rental property would fit your budget and goals?
Our team can help you create a personalized strategy based on your equity and cash flow goals. Click here to schedule a call.
Final Thoughts
Your home equity could be the launchpad to your next income stream—and these real examples show it’s not just theory.
It’s happening right now.
Build monthly income.
Grow a portfolio without touching savings.
Keep your lifestyle (and your home).
Ready to see how much income your home equity could generate?
Step 1: Visit Figure.com to See How Much Equity You Can Access. Takes less than 5-min and it does not impact your credit score.
Step 2: Once you know how much equity you can access, schedule a call with our advisors.
We’ll help you run your numbers, explore property options, and show you how to make your equity work smarter for you.
Step 3: Tell your friends so we can help more people generate wealth faster.
If you haven’t already, check out this post:
→ How to Turn Your Home Equity Into a Passive Income Stream (Without Selling Your House)