You need a management plan in a market to make it viable.

However, understanding the passive activity loss limitations is crucial before making this investment.

Although we do have our own money in every project we do, we rely heavily on our network of Private Lender's.

Quote from @Chris Magistrado:The point he's making is that the agent must take responsibility for building and maintaining their business, and the Broker won't play much of a role.

Trying to do my due diligence and research reviews on them before making this expense.  

If I can park the 388k ($415-27k) for one year at CD rate of 4.5% and then est 300k (after paying cap gain/depr recap) at 3.0% (assume CD rates lower) that interest income of about 24 months net of ordinary income tax is about the same as my current mortgage.Trying to play devil's advocate and think why selling this year does not make sense. 

The main reason I ask is because that is significantly below primary residence mortgage rates let alone any investment loans, if you can get rates like that I might need to make some changes on my end hahahTo answer your original question, assuming all else is equal long-term fixed rate debt is valuable. 

(Property Meld for one)--- Owners often think a PMC can just enter a tenant's home to make repairs, but don't really understand the potential legal issues of entering when a tenant is not home.--- Owners don't understand the percentage of maintenance appointments tenants miss!

I have only been doing this for 5 years but what I have learnt is that it takes money to make money.  

Once completed, the goal is to get them rented and then pull money out of each house to build a high performance spec.