Funny, I was hoping to equip myself with some ideas so I could propose some transaction options to them right off the bat--but I agree with you that that is probably not the right move.

Please reach out if you are a lender or can connect me.5 Bed 2 Full Bath & 2 Half BathExisting Mortgage ~$550,000Home Value ~$1.1+ Mil Depending on the STR income generated from this property, you could do up to 75% LTV on a cash out refinance.

The property was sold on 9/13/2024 for $155,000, generating a significant profit.

Purchased for $139,999 using a mix of cash and hard money, we revamped it with modern updates, including a new kitchen, flooring, and fresh paint.The property rented for three years, generating steady cash flow of $450/month.

While they cash flow, we've realized we're over-leveraged and want to take a different approach.Our plan is to purchase our first investment property in Indiana, possibly paying cash, with the goal of generating reliable income.

What may the property be worth then and how much cashflow might it be generating?

I like the idea of STR as it seems like it can generate significantly more income than LTR and would allow me to block out dates if I have friends or family come visit.

House Hacking a primary residence is the best way to generate wealth so I always recommend that as the next move. 

There will also be many homeowners who have had the properties in the family through generations and own free and clear but now still need to obtain a construction loan to rebuild. 

Now this is an annual thing (for all new properties).For rough math, you can generate a tax write off about 15-20% of the real estate value: one a million you can expect a $150k to 200k write-offs.