Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.  

FHA rates are actually lower than conventional right now even though there is a monthly mortgage insurance it’s not much in most cases.

I charge a $150 pet fee, of which $30 goes to my cleaner for the additional cleaning. 

DSCR loans are easier to qualify for when the asset values are a bit lower and rents a bit higher.

Is it wise to buy some units with high cash flow and low appreciation, and others with lower cash flow but high appreciation to diversify my portfolio?  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Finally, the cost of living is relatively low which makes maintenance costs lower for the labor.To Your Success!

Both of my house hacks were enjoyable and lowered my cost of living, helping me survive tough financial times.One of those tough times was caused by a live-in flip that went way over budget.

When you leave voicemails and emails to Debbie P you get responses from a Kathy Tran and Sylvia Flores is wanting you to pay your invoice and then they tried to charge me $45 later for my next bid because I canceled but I canceled with an enough time to do my due diligence and discovered they are fraud so my account can sit there with $45 owed because I will never pay them

I’ve been in a similar situation, and I think the idea of buying in lower-cost areas to renovate and rent out is a great play.