Examples might include areas in the Midwest, Southeast, or Sunbelt regions.Multifamily Properties: Consider duplexes, triplexes, or small apartment buildings to increase unit count and spread risk across multiple tenants.Short-Term Rentals: If you’re comfortable with the management requirements, STRs in vacation or business travel markets can offer significantly higher cash flow potential than traditional rentals.Value-Add Properties: Look for opportunities to buy undervalued properties where you can force appreciation through renovations or better management.Decision FrameworkRun the Numbers: Compare the projected cash flow, equity growth, and tax implications of selling versus holding with a refinance or HELOC.

Hard to give up such a low mortgage rate, but in the end that's small potatoes compared to potential OOS problems.  

A property doesnt increase in value just because an STR is run successfully on it. its value on paper is based on the comparables in the area.

I whip out big project estimates in a few hours compared to a few days.  

Will post back how long it takes and the “compared to what” responses as it happens. 

We're exploring creative ways to provide him with the cash needed for the down payment while avoiding triggering a taxable event.One strategy we're considering is purchasing his future primary residence ourselves, making the mortgage payments, and then, once we've built enough equity—comparable to the appraised value of his rental properties—transferring the title to him as a form of exchange.What are your thoughts on this approach?

He's the guy who shared my interested and connected us, he wouldn't recommend him as a seller if he had bad experiences with his other properties.I did ask about other properties and he shared about a duplex for $200k, but I wouldn't be able to afford the down payment needed.He acknowledged the rent is low compared to the market and never mentioned that it's his "best" property.1) Agree, but if he's been a good tenant is that necessarily a problem?

Its pretty much a necessity as the loans are so large on average compared to other areas of the country..

How is my property performing compared to the local market? 

Compared to fixing them both up and paying full taxes as flips.