@Tom HallAt 7% if you can I would pay it down as investing it net after tax gains may not get you the 7% you are paying - so it’s less riskDownside is you lose liquidity of that money as it’s tied in your propertyIf rates come down in future you can refinance and even take some of the cash out.Regarding your question are rates coming down, a lot of factors come into play but right now it does not appear there will be significant changes to rates over next 3-6 months.

If the rental income doesn’t sufficiently cover the debt payments by their standards, they’ll limit the loan amount, even if the property is worth more.You could try a few alternatives:•Look for lenders who specialize in commercial real estate and have more flexible DSCR requirements.

You will get away from income taxes and annual registration fees by going to the townships, but your property taxes skyrocket which may offset some of the rent increases.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

I've posted about Boutique hotels previously being the next high value investor asset class.. there are several examples of properties that have made 2024 improvements and nearly doubled the income and asset valuation.

It is not cash flow positive at this time due to high interest rates and property taxes.

Liquidated damages can compensate the owner for lost rental income or extended financing costs.

Your cleaner's income has no bearing on yours.

And yes I have done one in 50 years in the industry.Facts:1. purchase contract and gave 50k up front to bring tax's current. 2. it was all cash no contingencies.3. seller just goes dark no response to anything.4.

Mello Roos are bonds that are floated to do off and on site development and then added to the tax bill. there is also 1915 act bonds etc.. if there was not the ability to float bonds CA would never have developed as it has as the up front captial for major improvements would have been a major stumbling block..