@Andrew P.  1) as  2022 is almost  here -  consider  completing and filing the 2021 tax returns asap  and  consider having the  schedule E  for the  rental income  show as much of a   positive  net  income as possible  ...this   might  increase your tax  exposure for the year but if the  result  is  that you will be able to line up a  HELOC on your primary  property , it could be worth it 2) a  traditional  cash out  refinance  will  have the same  issue   of using the tax returns  for the  qualifying ratios  - the LTV  ( loan to  value ) for a OO triplex  isnt  very high 3) recent FED  announcement  - 3  seperate  .25%  increases   expected for  fed rate  in  2022  - this means  HELOC / prime rate will increase  by the same  amount when  these increases occur 

Today, I am going more in-depth on "Diversification" and will cover all the reasons subsequently.1) Diversification💥One of the biggest reasons investors diversify their real estate investment portfolio is to mitigate risk exposure.

Identify Exposures to loss (property & liability)2.

It had become so corroded and consequently gummed up with sludge, that the diameter was no more than 3/4".So, the point of this story is to provide some visual insight into why galvanized pipes are a risk exposure.

Been working with my cpa on tax planning, and the bonus depreciation, in addition to all of the other deductions given by syndications, will make a huge difference in my tax exposure on this sale.

 $2mm for concrete roads, $1mm for water sewer,  $1mm for underground electrical and fiber, landscaping $200,000, signage advertising $40,000, realtor 7%, now do 3 acre footprint of buildings $20,000,000, add on interest of $3mm over the life of the project,  engineering $500,000, surveyors $100,000, permits $200,000, dirtwork $200,000, etc etc  With the above cost and exposure unless you have a background in this no one will loan you the moneyLet’s say there are 150 units.  

Because real estate syndications give you the ability to pool your funds with other investors, you are able to get exposure to this asset class, without a seven-figure investment.

More exposure, minimum advertising cost, and no violations for placing signs around the city.

I learned quite a bit with the purchase including how much you can really leverage your debt in order to limit your liquidity exposure.

I see lots of investors taking advantage of accelerated and bonus depreciation to offset or significantly reduce their tax exposure on their sales.Happy to elaborate.Happy hunting!