Hey BP Community!!! I hope you all are having a wonderful day, so I've been having this internal battle with myself for a little while now. I am 22 years old, I have a 9-5 job, and am able to save an extra 1,000 a mon...

I particularly like this line out of the above article:- "The Bible has harsh words of condemnation for lenders who abuse those who are bound to them in debt, but it does not condemn the debtor".The point is, NO-ONE is perfect!

If I had the choice between 40 units that make $7000 a month with debt or.... 10 units that make $7,000 a month without debt.

Are you talking to the lender about assuming the debt or are you looking to purchase the property via contract for deed?

do you not like to have debt or just think this is a better long term strategy?

@Brian S.Whether debt or equity, nothing is guaranteed.

They are asking for a quiet title suit or a deed from the tax debtor.  

Debt or "leverage" only enables you to buy something that you otherwise could not have afforded.

That entirely depends upon if the lending activity even rises to the level of a trade/business: Scallen v Commissioner 2002 and Cooper v Commissioner TC Memo 2015-191the total number of loans made;the time period over which the loans were made;the adequacy and nature of the taxpayer’s records;whether the loan activities were kept separate and apart from the taxpayer’s other activities;whether the taxpayer sought out the lending business;the amount of time and effort expended in the lending activity; andthe relationship between the taxpayer and his debtors.

Take the proceeds and pay off some debt, or stick it in some other asset like a mutual fund that doesn't require this level of active management.I don't know when it will happen, but at some point there will be another downturn in the real estate market and you'll be well positioned to add to your portfolio again.My biggest piece of advice for avoiding this situation in the future is to purchase properties which are as close as possible to where you live.