I was not comfortable with the way everyone started using bridge loans and floating rate debt in the last 2-3 years, so I avoided those type of deals.

I could keep in a Money Market at 2.x% return OR, what if I kept the $40K sitting in the additional equity of the property that I could tap into the line of credit in the event it was needed.The quick math:A rental property @ 8% cap rate - 6.190% floating LOC rate = 1.8% interest rate arbitrage on the extra $40k sitting in equity.

The price decreases are due to both the decreased returns to investors possible at a given price point as the cost of debt financing increases, as well as some dumping of assets due to redemptions (looking at you, Blackstone) and the inability to refinance properties that had been purchased in 2018-2021 with high leverage floating rate debt. 

As housing prices went down, the assessments followed so, assuming the muncipality/State could collect any taxes, the amount they were collecting were less since they had a fixed tax rate unlike what I described in my referenced post where the rate really just floats. 

I personally am using Fidelity Advisor Floating Rate Hi Income fund (FFRIX). 

The only downside with the HELOC is that the interest rate floats and we're currently in an increasing environment.

@Bonnie Low please be cautious with HELOCs, most are adjustable rate and float with the 10 year treasury rate.  

My god, that's a terrible idea.With 150k I take you right out of the small buy box market and move you to the major leagues where you'll be floating 75k - 100k in each deal but either selling for a heft profit or adding a really nice asset into the portfolio.

You have issues floating around with gift tax, estate tax, income tax, and property tax, all simultaneously, all of which have different rules in place. 

Its a lot more work when they have to demo existing tile and relevel/float to install the new flooring.