Plus if you bought with all cash from the proceeds of the sale you would be trading down in asset value quite a bit.Depending on the refi rate you could consider keeping this and refinancing it to pull some cash out which you could use as a down payment on another property.Just some thoughts, hope they help the issue with the refi is those rates at the new loan if i do a 75% LTV will almost overcome the cash flow its producing now and basically get to a break even point.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

When you have trouble keeping 'em straight, you can worry about this.

Those people overlooking what it means to “materially participate”Here’s the Material Participation Criteria:Spend more than 500 hours on the short-term rental businessDo substantially everything for the STR businessSpend more than 100 hours on the activity and no one other individual spends more time than you doSignificant participation activity for more than 100 hours, and your combined activity in all significant participation activities exceeds 500 hoursParticipating in the business for five of the 10 previous taxable yearsPersonal service activity (non income-producing) for three of the previous taxable yearsRegular, continuous, provable participation in the business for more than 100 hoursA Cautionary Tale: The Story of JacksonLet's take a moment to learn from the mistakes of others.

If you have a lot of equity in your home I would first evaluate if it's possible to leverage any of that equity to acquire another asset that would produce more cash using a home equity loan or line of credit3.

https://www.zillow.com/homedetails/15-Windle-Ave-North-Graft...Hey Guys, I’m working on a deal that’s a bit complicated due to the subdivision of land, and I’m having trouble accurately comping the subdivided parcels.

Very likely the seller doesn't know the income-producing value of those extra spaces and therefore has not included it in their pricing.

If $23k is just a “hope and a prayer” then he’s going to have a very hard time producing any CREDIBLE itemized bill.  

On the other hand, I could hold on to the property with the thought that I can handle the expenses of keeping it, while continuing to pay off considerable equity and gaining appreciation for each year I hold on to the property.I would love to hear everyone's thoughts on what is the best option, as I have been having trouble making a decision given my limited knowledge and experience. 

I am hoping to find a lender to build a long term relationship with and purchase roughly 25 properties in the next 4-5 years but am having trouble finding a bank in the area that works with out of state investors.