Personal background: Married with no kids, 100% debt free, live a rather tame lifestyle and don't spend large amounts of money, two newer vehicles (2020 & 2024) so no vehicle purchases expected for the next 10 years. 

As I see it in the current market, STR is now a way to get a really good, appreciating asset to pay for itself, not a way to produce a meaningful amount of cash flow after all expenses. 

.🤔 The title company wired the whole amount to us without deducting for the first lien or even catching that there was a first lien.  

I have spoken to lender and amount is fine.

Notably, there is often an unfortunate cycle where: (1) current ownership has financial struggles; (2) this requires the current ownership to fire sell or declare bankruptcy; (3) the development suffers as a result; (4) new ownership comes in and tries to fix it; and (5) the cycle repeats.

You need a huge amount (of stabilized) real estate to generate the same cash flow as your W2.

However, you have to take in consideration the amount that would cost you to use that money plus the new loan on the multifamily.

Quote from @Jim Reynante: After owning properties C/D neighborhoods with high crime statistics, I have experienced all of the things that go along with it: 1) High turnover rate; 2) Tenants that don't care for the property; 3) Little/No appreciation in home value; and 4) High Crime Rate (burglary, vandalism).I am pretty tired of fixing broken windows, fixing broken doors/locks, and painting over graffiti.

Investment Info:Single-family residence fix & flip investment.

@Cheri Banet, the amount you owe has nothing to do with the taxes you will pay.