NC is a great market for your goals, however it will be challenging to find inventory that has much cash flow; many people who toss money into multifamily here do it to avoid the tax bill + take the 10 year runway of growth.How much SHF RE do you currently have?

At the same time, someone else reduces your debt, and you get to use the tax code to improve your tax situation legally.  

With the purchase, the rehab, the closing costs and the holding costs (hard money, taxes, insurance, utilities) our all in is around $200,000, but we have created $40,000 in equity.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

One caution when using crypto to acquire property is being aware the tax ramifications are identical to if you converted to cash first.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

I am using the tax benefit along with the principal pay down and appreciation to offset.

I understand that I need to account for taxes, insurance, and other costs—Should I go with a LML and then do a refi later on?  

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

Either way, with rent and price appreciation, tax benefits, holding long term is a net worth exploder.