This, in turn, allows for higher rental rates or quicker sales, directly impacting the ROI.I could remember when an investor purchased an old, three-story commercial building at  a bustling downtown area.

Considering a rate buydown on a DSCR loan?

The greater the differential in interest rates between the interest rate of the loan on the subject property and the prevailing current interest rates between the greater the probability that the lender will accelerate the note.  

That moratorium is supposed to be temporary.Mind you, while the US used to have (some of the) lowest interest rates in the world for the last 15 years, this is no longer the case and the US actually has some of the highest interest rates in the world nowadays and that doesn't look to change any time soon.

Shorter term CD's actually have higher rates than longer term so staying in the 3-6 month range is best.  

Hey @Brett Baker, generally, any place with a great water view or directly on the water will bring more revenue.Of course profitability will all be based on purchase price and prevailing nightly rates in the area.If you find a cool 2/2 or 3/2 right on the water with a great view for 1.5m or a 2/2 or 3/2 house a block away for 600k, then I would look at the house over the condo.

Let's break it down with precision:The "Pain" (At First Glance):Your $2.8M sale splits out as:Building (§1250): $2.3MPersonal Property (§1245): $500KOriginal Basis Allocation:Building: $1.6M (depreciated over 27.5 years)Personal Property: $400K (fully depreciated)Building Depreciation:Annual: $1.6M ÷ 27.5 = $58,182Total over 10 years: $581,820Gain Breakdown:Building (§1250):Sale Price: $2,300,000Original Basis: $1,600,000Less Depreciation: ($581,820)Adjusted Basis: $1,018,180Total Gain: $1,281,820Unrecaptured §1250: $581,820 (25% max rate)Capital Gain: $700,000 (20% max rate)Personal Property (§1245):Sale Price: $500,000Adjusted Basis: $0Ordinary Income: $500,000The Strategic Play:Remember those suspended passive losses you couldn't use?

Consider this scenario:- You buy a $400,000 duplex with 5% down ($20,000) at a 6.5% interest rate.- Your monthly mortgage payment (PITI) is about $2,800.- You rent out the other unit for $1,800 and maybe a spare bedroom for $500.- Total rental income: $2,300.- You’re still responsible for a $500 gap each month.Add in maintenance, unexpected expenses, and vacancies, and your costs can climb even higher.

This sounds like it could be a good deal for the partners, and perhaps the bank, but a terribly risky deal for you, with little upside.What exactly do you mean by, “There will be a promissory note drafted for the amount and the duration and interest rates”?

I'm open to properties were cap rate is around 10%+ and Return on Cash is 10%-20%.