For example, if your purchase price was $300K and the FMV at gifting is $500K, the recipient's cost basis remains $300K, potentially leading to higher taxes upon sale.You and your spouse can gift up to $38K annually per recipient (under the annual exclusion) without reducing the lifetime gift exemption.

I wouldn't think it would take a private lender (which is much higher priced) than a typical mortgage broker's rates.Is there a reason you think you need a private lender?  

The bank will make you leave 25% equity in the property - but you also still want the property to at least cash flow some - so be careful how much equity you pull out / new debt you take on.I would do a cost benefit analysis of what your actual gain is in cash-flow on buying a new property with a (currently) higher interest rate (if financing), versus just holding on to the current appreciated property and enjoying that cash flow.All the best!

And, if a higher return is offered with moderate risk, don't believe it.

The rate might be .5% higher for the 30 year, but looking at it financially what if you took that $187/mo and invested it into the stock market at 7-9% returns? 

@Jonathan SniderFannie and Freddie do have LLPA's and the lower the down payment, the higher the cost.

@Chinku Chinku the rich get rich by making their money work for them.They borrow at one rate, to invest in something that returns a higher rate - they profit on the difference.Only you can evaluate your risk tolerence though.

The higher insurance premium required a higher escrow payment which the original borrower didn’t let me know.  

I invest primarily in a lower cost area but also own property in, and am looking in, a higher cost area.

Fred, something to look out for is if this depreciation clock resets with the new administration in office. 2025 it went to 40% but the benefit would obviously be much higher if it goes back up to 100%.