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We then went to the bank, and were wanting to get pre-approved for another rental, we had some cash but not the 20% they would like to see for an real estate investment, as we wanted to hold some back for fix ups, but were told we could leverage the equity in the first rental house as the equity had increased. " Ok, I realize it doesn't sound very flashy or ground breaking, but it is 100% true. This results in not paying tax on that other income and those tax savings mean cash in your pocket.