I know a common equity investment would be subject to UBIT but since there is no back end upside I wasn't sure if the pref equity would be viewed as a loan?

What type of loan are you looking for? 

Hey @Ujwal Kolli,When you do a cash-out refinance on one rental property to pay off the mortgage on another, the interest tracing rules generally allow the interest to be deductible if the loan proceeds are used for business purposes, like paying off another rental.

I'm happy to give financing insight and help with loans, but will leave the geographic input to the local experts.Cheers,Chris

Hey @Glenn Larson  You’re right, seller financing really depends on the seller’s flexibility and the specifics of the deal, but I can give you a couple of typical structures to think about:Interest-only payments: In this setup, you pay the seller interest on the loan without paying down the principal right away, giving you time to stabilize the property or improve cash flow before paying it off or refinancing.Balloon payment: You might negotiate a lower monthly payment (possibly interest-only) with a balloon payment due after 5-10 years.

Pros - quickly pay off high interest loan and begin to cashflow $40k per year after year 4 with no inputs from my W2 job. 

If not, is the loan assumable?

I bought a wholesale property last January using a hard money loan with 80k in renovations.

In the process of BUYING a PURE Option to buy a SFH subject to an existing loan (at a lower fixed long term interest rate)Let say the OPTION "Strike price" to BUY the property IF or WHEN the OPTION is EXERCISED is $300K The seller wants $60K to sell us the OPTION.

Also, your loan will likely be more advantageous as a residential investment property right now.