@Jay Hinrichs exactly the risk is even more than traditional development and the profit is actually less with more operational headaches.

If it were me, I would like consider refinancing only 1 of the 2 properties now and considering the second later in 2025 or even early 2026 when rates potentially soften.

If it’s a structured settlement and you aren’t getting a lump lum, you could contribute some of that to a Roth or Traditional IRA each year, or if you are self employed even more to a SEP IRA.Also what’s your short term, mid term and long term objectives?

Could you go reinvest it in another property to build even more income?

I think you should be paying about 10.5%-12% on average right now, 1-2 points as well, and some lenders will not even need an appraisal.

Even if yall are friends just lay everything out on paper where its clear.Cheers from Fort Worth!

Collection agency turnover the case to attorneys rarely only when judgement is large and landlord is willing to pay heavy attorney fee, which can start at around $3000 for filing garnishment but even that doesn't go anywhere without a valid address of the tenant.

We’re property managers based in Redding, CA, and the laws here favor the tenants, making situations like this even trickier.

Even with buying down the rate, I would not expect to get better than low 6's in the best of scenarios.

Even then, the IRS may scrutinize the transaction if it appears the intent was to immediately convert the property into a personal residence.Additionally, if you eventually sell the property after converting it to a primary residence, you may qualify for partial benefits under the Section 121 exclusion for primary residence gains.