Equity is the difference between what a property is worth and what the owner owes against that property (ie. mortgage).

Let's say the fair market value of your property is $200K, but you still owe the lender $125K. The equity which is in your property is $75K.

There are several way to increase the equity in your house or Investment

property, but normally this occurs over a period of time. By upgrading your bathrooms, kitchen, and even landscaping you can increase the value of your homes, which will also increase your home's equity.

If you are looking to create equity in an investment property, it's best to buy a property that is run-down or an "Ugly House". Normally you can buy these properties at a discounted price, make repairs and increase it's value, thus increasing the equity and turning a profit.