Loan-to-Value is the ratio between loan value to a property’s value to determine the eligibility and amount a loan can be taken out. The loan-to-value is calculated by dividing the mortgage by the appraised value of the property. At sale time equity is calculated by dividing the loan by the price of the property and subtracting that sum from 1. Then multiply the sum by 100 into a percentage of equity that the investor holds in the property. Watching the trends of an investment property can help you determine a good time because prices can change and may be used to decide between comparable properties. Things like appreciation, depreciation, and revitalization can change over time.