They get to save money on living expenses and we have a much higher yield then LTR's by far. 

Or rental demand could be poor leading to higher than norm vacancies.

The 2025 Philadelphia assessment hit really hard unfortunately the values that they assign him any properties are pretty accurate of what they're worth in fact, even a little bit lower sadly though, that makes your property taxes a lot higher and gives you a large jump from 2024.

@Bijan SabbaghiYou don’t that’s the challenge - we pull data from several places as a note holder and for example and currently we see less than 20% actually going to foreclosure as most are ending in bankruptcy right now due to borrowers equityThe ones that are under water are typically going back to the bank.Best bet is to find properties where deceased or maybe divorced to get higher chance of actually going to foreclosure

None of these originators are allowed to assess you as a higher risk because you paid off a mortgage early. 

You’ll be able to access more equity in your primary vs a rental property, and the rate will be higher.

This would be in class b, class c will have higher maintenance/cap ex on average. you have $0 for vacancy.

So many people gloss over properties before truly evaluating their pro forma rent.Also, I think it's a great point about this strategy working in higher rent/gentrification areas of Chicago..it seems counterintuitive.

The new property has to perform enough better than what you have to pay the higher interest rate on the higher balance, AND ADDITIONAL profit just to payback the $65k you lost selling.

Buying high hoping on higher, higher, higher doesn't work too well.