Some of the best investment were made in bad neighborhoods and higher crime rates then as usual the area becomes gentrified and continues to grow in both equity and passive income.

The only issue is the interest rate is 7.125%.

Being that rates are up it's another way to offer exatly what you mentioned; the chance to own for a couple hundred bucks more than renting.Thoughts?

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

Last year, I purchased a SFH under market at 7.65% interest rate and did some rehab to up the value.

It’s flexible—you can invest in rentals, commercial properties, or syndications—but managing it requires careful attention to avoid prohibited transactions.In comparison, a SEP IRA offers tax-deferred growth, which might be better if you expect a lower tax rate in retirement, but it doesn’t avoid UDFI tax on leveraged properties or allow borrowing.Before investing, check if SDIRA Wealth aligns with your goals and review their track record.

I have 7 MTR and my income is 1.7x my long-term rates ($1200 vs $2000), but that is very specific to my properties, my location, my business model, etc. 

It seems like everyone is preparing for a big boost.The current growth rate seems feverish but I've seen a lot of houses going up to prepare for the influx of population.If you have any questions, I'm available to answer them.

So with interest rates high...

Depending on how it is done and what guarantees the government offers and requires of the released entities, interest rates could move slightly higher.