Got a question to ask. Let me make it simpler. If your home total equity was $1M, $800K for house and $200K cash equivalent. You heard from some NYC friends that an innovative fireworks machine would get you rich and bought one in a bidding war at price of $300K using loan of $200K. Now you have $800K house, $100k cash, -$200k loan and $300k cool fireworks machine for your garage shop. That expensive machine won't burn your pocket but may blow your house. Now, tell me what's your current equity amount. $1M plus a free machine? Yeah, congratulations! You got it!