Given that I’m currently unemployed, I’m leaning towards a fix-and-flip to generate some liquidity.Here’s my current situation:My first investment property (the duplex) was purchased using a HELOC from my mother’s primary residence (via Union Savings Bank), and the deed is currently in her name.I also secured a second HELOC against the investment property to cover contractor expenses.I'm considering transferring the property into a DSCR loan under an LLC, but I believe this would close out the second HELOC—can anyone confirm if that’s correct?

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

I think Vail has an earnings report coming out shortly that should help shed a little more light. 

Orangeburg is an inferior, out of date product, made out of essentially paper and tar.

Detroit has a lot going for it—affordable prices, strong rent-to-price ratios, and an appreciation story that’s still unfolding.

This has created an issue in discussing any topic as I have read not to over-whelm your partner with your knowledge, and she seems to know everything (sound familiar🤣) .

Hi Collin,After managing hundreds of properties, I always keep an eye on short-term rental trends, especially in key markets like the Smokies.

Is it an A-class property, or a C-class?

However, if your flip is considered inventory (not an investment property), a 1031 exchange won’t apply.

You can submit an offer but be prepared for a potential counteroffer.