Many of my usual long term rental buyers have switched to fix and flips lately in order to build up their cash balance sheet more and wait for good deals to come. 

The drawback would be if you only make minimum payments, the balance will never decrease.

The markets are generally pretty in balance.

When not allowed:-The entire outstanding balance including repairs, utility, unpaid bills and other charges and the outstanding rent for the lease duration is due immediately.XV.

Many lenders have brutal release fees to break up a blanket loan these days; many are 125% of the allocated principal balance.  

Hi Vadim,There is a conventional/FHA program called a '203k rehab loan' which allows you to purchase a property and wrap in ALL renovation costs INTO the mortgage, so in your example above, the total loan balance would be around $70,000. 

These factors make the city a honeypot for investors looking to strike a balance between cash flow and appreciation potential, and positions Huntsville as a good option for either medium-term or long-term rentals.

So many answers some down to "it depends" and "will it cash flow" is at or near the top of that list.This won't help your cash flow, but may help other parts of your balance sheet.  

., parts of the Midwest or Southeast) offer higher yields but lower appreciation.A strategy could be to diversify: Sell your high-appreciation property in LA, then invest in a few smaller, higher cash-flow properties in secondary markets to balance both cash flow and growth.If you'd like help analyzing financing options or structuring a 1031 exchange for a new property, I’d be happy to assist! 

Using a 1031 exchange to capitalize on better opportunities is a great strategy.Your point about avoiding over-leverage is particularly eye-opening—it's a reminder of how critical it is to balance leverage carefully.