If you’re comfortable carrying some debt for a bit longer, a HELOC or cash-out refinance may provide more flexibility.

Rental income carries the debt service 100% How did you find this deal and how did you negotiate it?

But to close without revealing the debt places the issue squarely on the shoulders of the seller.   

Once you combine cash flow, appreciation, debt reduction, tax benefits, equity, depreciation, inflation hedge, rental increases over time, etc.

This makes targeting distressed sellers, such as those in pre-foreclosure, or those with ballooning debt that was taken out in 2020-2021 when the interest rate was 7.37x lower (8/09/2020 the 10-year treasury was .56%, 1/15/2024 the 10-year treasury is 4.69%) making it very difficult for those that underwrote the property in 2020 to have predicted refinancing at these rates and likely a sale is their only option.

Cincinnati and Columbus chapters are very active here and nationally and a great resource for networking, recommended contractors/vendors and education.

We certainly have many fix and flippers, and they generally raise equity (vs. debt).

for me, the ones that cashflow the most are the ones that I bought with 3% long term debt, they were new (low maintenance) and they are in high appreciating areas(just a bonus but does not impact cashflow).

Maintenance and potential repairs will also require a long-term financial plan and setting aside a contingency fund for such expenses.The steady cash flow, appreciation over time, and tax benefits can make a meaningful difference to your wealth in the long term, especially with the principal paydown on the mortgage.However, if managing the property from a distance feels too burdensome, or if you’d prefer the certainty and flexibility that comes with having less debt (especially given the high mortgage rates), selling and using the $100,000 in equity to reduce your loan for your next home may be the smarter move.

For example, many regional and national builders (like DR Horton, Lennar, Toll Brothers, etc.) showcase their homes on our website at wholesale pricing where you can get up to 10% discounts on homes, 10% cash back, significant rate buy-downs, etc. that you would not have access to if you were to buy from them directly.