"Normal people" ;-)   i.e. the average investor, doesn't know that technique and I'd say probably doesn't have enough earned equity to worry about protecting equity. 

I’ve also heard that some investors choose a 30-year fixed and then pay extra each month to reduce the total interest—almost like mimicking a 15-year fixed—but I’m unclear on how that saves on interest given the rate differences. 

On a property with $24,000 a year in NOI and a market cap rate of 8.5%, and a rent increase of $50 per month and a savings of $1,000 a year by increasing your insurance deductible, you will add $18,824 of value.If you can reduce risk, such as having all tenants with significant time remaining on their leases and all with security deposits, that will often decrease the cap rate, which increases value.

@Jeremy England If a retired senior uses a HELOC (Home Equity Line of Credit) to invest as a private lender, the returns they earn are generally treated as ordinary interest income, not capital gains—so the 20% capital gains tax rate does not apply.Here’s the breakdown:Borrowing the HELOC isn’t a taxable event—it’s a loan, not income.The interest earned from lending the HELOC funds (e.g., through a promissory note or real estate deal) is considered ordinary income, taxed at the investor’s regular income tax rate.If the investor is on Social Security, this added income can impact how much of their Social Security benefits become taxable (up to 85% of it can become taxable depending on total income).So even though the profit feels like investment income, the IRS treats it like interest income, similar to earnings from a bond or savings account—not capital gains.

That means:No capital gains tax rates apply—instead, profits are taxed at your regular income tax rate, which could be higher.You can’t defer taxes by reinvesting the profit into another property unless you're doing a 1031 exchange, and flips generally don’t qualify for that because they’re not held for long-term investment.The idea that you only pay taxes on the “last” property if you keep reinvesting is a myth—each flip triggers a taxable event once it's sold.If you're flipping regularly, it’s smart to set up an LLC taxed as an S Corp to help manage taxes and reduce self-employment tax liability.This post does not create a CPA-Client relationship.

., to stock/bond trading accounts), so any uninvested cash I have will just sit there not earning anything. 

In terms of my timeline, I’m focusing on the next 4 years for a couple of reasons: 1) I want to be as liquid as possible when I get home, and 2) since I’m not earning income, I’m looking to take advantage of the low tax bracket while I’m incarcerated.

If the seller isn’t interested in a 1031 exchange, there are still several strategies to reduce or defer capital gains tax:1.

With no recent price increases reported and nearly half of listings reducing asking prices, we’re entering a moment of recalibration.Rising inventory and longer days on market could suggest more negotiation power for buyers, especially for investors focused on long-term value and cash flow.At $378 per square foot, remodeled units may still justify strong resale values depending on finish level, comps, and market timing.Are you seeing more opportunities in the Palm Springs condo space lately?

However, earning only ~$20K annually on $870K in equity is a low return (~2.3%).