This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

I currently work with investors to build their portfolios with Turn-key long-term rentals, making it hands-free for the investors. 

Key items to rehab on the second home to bring the property value up for the refi, determining which lenders/servicing companies will be favorable, Identifying good properties to invest in altogether.

Key Details of the 45L Tax Credit:The credit offers up to $2,000 per eligible unit for builders and developers of residential homes that meet specific energy efficiency criteria.To qualify, the units need to meet or exceed certain energy performance levels in comparison to the national model energy code (e.g., the 2006 or 2009 IECC — International Energy Conservation Code).Cost Considerations for a 90-unit or 112-unit Project:The actual cost of qualifying for the 45L tax credit depends on various factors, including:Energy Efficiency Compliance: The primary cost will come from ensuring that each unit meets the required energy efficiency standards, which typically involve energy modeling, certification from third-party energy raters, and potentially upgrading insulation, HVAC systems, windows, and other components of the building to meet the necessary performance levels.Energy Modeling: Typically, you'll need to pay for an energy consultant or engineer to model the building's energy performance and ensure it qualifies for the credit.

If you want to build equity quickly, some level of hands-on involvement is key.

There is many different ways, key is being consistent.

I’d love to connect & discuss my goals further, especially since you specialize in long-term, turn-key properties, which are exactly what I will be focusing on as an investor.I’ll definitely check out the podcast you shared to learn more about turn-key investments.

However, having both a DSCR and fix and flip lender at the ready who is fine with rural properties will be key. 

@Stephen PattonStarting in real estate can feel overwhelming, but breaking it down step by step is key.

The key is going consistently and talking to as many people as you can.