Borrowing from the equity must be done wisely, or you will end up with negative cash flow and be at high risk due to over-leveraging.NOTE: I use interest rates much lower than they currently are in 2024!

Then decide how far away from your location you want to be. median home price is a little lower in RI.

Do you lower prices, offer promotions, or focus on longer-term bookings?

There are some solid advantages here: new construction typically means lower maintenance costs upfront, modern amenities that attract quality tenants, and potentially higher rental income.

So, $5k/$20k = 25% return on your investment.This is a very simple example that ignores the rental income vs any mortgage payment (taxes & insurance, etc. would be the same in both examples).To increase cashflow, you would also want to take the lower payment of a 30-year mortgage vs 15-year.Regarding the purchase:1) Require the seller to have tenants sign a MTM lease or vacate before closing.

First, I went to the lender and asked if we could do a loan modification instead of me shopping around for a new loan that might not be with them at a lower rate and for a modest processing fee they did that.

This is a common question among real estate owners.Let's dive in:The reality is that wealthy families often pass on real estate assets from generation to generation.For example, if one generation has an RE entrepreneur who amasses $50 million worth of real estate, that portfolio can generate enough cash flow to support multiple future generations comfortably when passed on.So, what happens if that initial investor built their empire by rapidly depreciating assets and using 1031 exchanges to lower the basis and defer taxes along the way?

For Property 1: Should I sell this property and transfer the equity into another investment, or should I explore ways to lower the monthly payment and break even or slightly positive on cash flow?

In cheaper markets it is more common to rent LTR (from what I can see, that's why the prices are lower).

Or in some cases you may pay him less than the $50k, do a loan with him for more than $150k, and pay him on the larger amount while he pays his lower amount to the bank.But now matter how you structure there are a few risks.