In contrast, hard money lending usually comes from specialized lending firms or investors and focuses on the property's value rather than the borrower's creditworthiness, often featuring higher interest rates and shorter loan terms.

Will they be depreciated over 27.5 years or as personal property on a shorter schedule? 

They may not have been able to “hold on” for the turn in values, or their investment horizon may have been a shorter time (say 5 years) before the money was needed.  

A refinance offers a 30 year fixed mortgage with a lower rate while a heloc for example offers a shorter term and a higher rate. 

Hi Erin, I work for a property management company in Milwaukee, Wi, and here are some thoughts to consider: Vacation rentals- Pros: Higher Income Potential due to tourists, Flexibility, Shorter Tenant CommitmentCons: Inconsistent Income depending on demand and time of year, More Management Required, Wear and Tear because of constant turnoverLong-term rentals- Pros: Stable Income, Lower Management Effort, Predictable Expenses, Less Wear and TearCons: Long-term commitment (this can be pro or con depending on the tenant), Market Dependence The choice between vacation rentals and long-term rentals largely depends on your financial goals, management capacity, and the property’s location.

This is a whole different ballgame, now you're dealing with 'tenants'.....with all the rights that California gives them.Can you do shorter term rentals where you are?

@Chris Lee not sure if this is helpful but I've been running a midterm / shorter hybrid model for a little over a year on 6 of my units.

I've been buying and holding for SFH's rentals for 15+ years, but my goals now are Cash flow (70%) and Appreciation/Equity (30%) so I can invest faster/grow more in shorter periods of time.I ran this: View report on BP as a really rough test for investing in this property (3-plex, but also offers an attached 3-plex for consideration). 

A Heloc is a open end mortgage like a credit card so its an additional trade line on credit, cannto never be used as an Asset, PITI reserve, and its a DTI killer in most cases.A heloc is also usually set up on a shorter term versus a mortgage, carries a Higher interest rate, and most carry a interest only with a prepayment penalty.

Additionally, consider exploring hard money lenders, as they often offer flexible options for tapping into land equity, although they come with higher interest rates and shorter terms.Another option is reaching out to land-specific lenders or specialty loan providers who may offer land equity loans.