The redemption period has expired four months ago.

As my avg rental period is <8 days, and I have <14 days personal use at the property and believe I can meet the material participation test, this should be a non-passive activity.Specific Questions on Material Participation:1) Do hours logged for material participation in 2022 include time prior to placing the property in service (i.e. first half of 2022)?

We're considering our options for moving forward.Numbers:Purchased for ~ $230,000 (2.5% interest)Remaining balance ~ $220,000Appreciated to ~ $400,000Cash flow is ~ $500 a month after setting aside for all reservesOptions we're considering:1- Cash out refinance- at current market rates, rough estimate is that we could access close to $100,000 in equity, but our cash flow would go to $0 or possibly negative for a period.2- Sell now - if we sell before the end of the summer, we could still qualify for living in the property for 2 out of the last 5 years for the additional tax benefits.

So for us if we can pay it back in 2 years or less, we will write off that interest and have it paid back in that period and look for the next deal. we find that if it doesnt pass our heloc test it wont pass  our SDIRA test...

They have high loan amounts and a very long draw period and long pay back period.

.- thanks   1) on the  1st mtg  refinance proposal at 4.1%  -  sounds like they are  offering you the  higher note  rate  so they can  absorb  some of the closing costs .....make sure you get a loan estimate and  review the details about them picking up all costs  ( titel / escrow / recording /  credit  etc ...)    2)  also  check the  index / margin and  caps   on the new  loan  offer   and  compare these to the  present loan  details  ...if you  keep this loan past the   rate/ payment  adjustment  period - you want to make sure  you  are aware of  how the ARM  can  change   3) the offer  to  do  " free  "  refinances in the  future  is  no  big deal  beacuse  any lender  can offer this  via  a higher rate  to  absorb  all costs 

Assuming the repairs come of their current asking price and are ~$40,000, I did a quick underwriting and come up with a 5.7% levered IRR at a 10 year hold period and 6.5% interest rate. 

Cash out refi usually requires a seasoning period (eg. 1 year before you can refi) but can vary lender to lender

The travelers might only stay a short period of time and only stay for a few months.

My investment goals are modest (say, 9-10% IRR over a 7 yr period) and I am convinced Philly will not generate that.