Not sure what you’re seeing. But I will give a hypothetical example.

$200,000 house. I buy it for $160,000 because I see the value. But I don’t spend that much, I spend 20% or $32,000. I’ll toss another $10,000 for some updates that raise the value of the house.

The house is now worth $230,000 and I’ve spent $42,000. I get a tenant in there for a year and they pay me $2,300 every month that I use to pay off the house.

Also, I refinance the house with the bank for $230,000. Bank gives me a new loan at 80% with a check for the difference, aka $46,000.

I now have no money in this deal, a renter paying the mortgage, a house that appreciates every year, and an extra $4,000 that I didn’t have a year ago to put into another deal.