More than likely you're decreasing your IRR as you're putting more money into the deal.

@Peter Morrissey I am not sure how to calculate this, however can't you simply sign up for the STAR program if/when you purchase, so your taxes will also be at the decreased rate?

Which decreases the quadplex yearly taxes from 7000 to 5500 roughly.

The purchasing power of our dollar is decreasing every year.

@RyanYes I do think about what would happen if the market peaked, interest rates continued to rise and I wouldn't be able to cash out refi but oh well, at least I still have an asset that I can rent out and have my mortgage paid down and then in another 2-3 years I will start to take advantage of the decreasing rate and appreciation.

@Robert HuizarBecause you will be taking out less than you put in, this would just decrease your basis in the LLC.

No one has a crystal ball in regards to predicting the value of home prices in the future.Your next property can go up 20%, stay flat or even decrease in value.A lot of BP'ers are speculating we are at or near the top of the real estate market.

However - this decreases the total amount of conventional mortgages you can get if you did it separately.

You can see the rent has steadily decreased.

Residential taxes are a drain on local municipalities so they never decrease the assessment unless you contest the taxes, which is done often in Alabama.