What you're missing is the fact that you're using equity from an IP and you'll very likely be a) very poorly structured financially and b) have no idea about the actual end valuation of the property due to any shortfall in valuation being paid for out of equity. The biggest issue in these scenarios is you end up paying WAY too much for the property (for eg, pay $470k for a property that's only worth $400k) that results in years of waiting for growth before you break even. Add to that, you've also got your other IP tied up in the deal which further restricts you if you ever wanted to refinance. It can get very messy. If it sounds to good to be true it always is.