The 10-year treasury note has dropped about 40 basis points recently.

LTV is approximately 63% $475k loan, value around $750kDecent cash flowCouple of capital projects coming up in the next 2-5 years totalling about $25kHere are my options:1.  30year fixed at 4.125% - principal & interest payments2.  1st position HELOC tied to prime less 1%, adjusts when prime adjusts, can lock the rate sheet of the day (at any time) to a 5, 7, 10 ARM at 5 year treasury swap (H.15) rates plus 2.25 or 2.625 - minimum interest only payments due during first 10 years (I would continue to pay down principal).

As far as LLC protection is concerned, having a New Jersey LLC allows you to have standing in court, as a foreign entity would not be able to sue in a New Jersey Court unless you also filed as foreign entity with the New Jersey Treasury Department. 

In the event the IRS actually redeems, I understand I would be out the demolition money but that would be acceptable to me.Ultimately, the question is could one be liable to the Treasury for reducing the value of property that one owns but where the property still subject to IRS's right of redemption?

Need for immediate gratification often leads to investment disaster.If you want a safe, monthly return, by a certificate of deposit or treasury bill.If you want greater return, with greater risk buy a performing mortgage note, or invest in a note fund.For an in between return with in between risk you can try REITs.Of course, limited knowledge and experience increases your risk of failure substantially.

Hi Jack, I have copied a brief article that I wrote on holding periods, so hope this helps:Holding Guidelines for 1031 Exchange PropertiesWhile the Department of the Treasury Regulations and numerous rulings make it very clear that you must have the intent to hold your 1031 Exchange property for rental, investment or use in your trade or business, they fail to define exactly how long or over what period of time you need to hold your relinquished properties or replacement properties in order to qualify for a 1031 Exchange pursuant to Section 1031 of the Internal Revenue Code or Section 1.1031 of the Treasury Regulations.Property Purchased Just Prior to 1031 ExchangeThe Internal Revenue Service has routinely taken the position if you purchased your relinquished property just prior to your 1031 Exchange transaction that you have actually purchased and are holding the property for sale (inventory) rather than holding it for rental or investment.

Slowly...24 Month Lag18 Month Lag12 Month LagNo Lag - Actual DataThe yield spread is the difference between 10 year and 2 year treasuries. "10's and 2's."

-----------------------------------------------------------------------Actually, it was the Treasury Department that debased the currency, not the Federal Reserve.

Now I have two assets that are growing, leverage by a currency that is being devalued by the Treasury by the year.

Treasury" plus a margin of 2% to 2.5%.