If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

Our monthly mortgage payment would increase, but we would still break even.Both of our car loans have an interest rate of 4.5%.

Once you increase your real estate portfolio using these tax free money, part of the cash flow they generate is offset by the non cash deduction (ie depreciation) so you get the equivalent to the depreciation amount but don't pay taxes on it.

You need an income that meets three requirements:Rents increase faster than inflation to offset constantly rising prices.It must be reliable; it continues even during economic downturns.It must last throughout your lifetime.These are all long-term requirements, so the current interest rates are not the major issue.

Aside from the increased rental value, properties that are on water, or have a view of the water, are going to appreciate in value at a higher rate than the others.

I am looking into my STR options but from what I have learned this is a overflowing market in the area and the vacancy's are increasing so I may look into mid term and long term only.

I’ve had people who signed up for 6 months and stayed 5+ years, paying increasing rental rates.

I'd happily accept the former, though the 16% YOY property tax increase would be a non-starter for me.

Where I got into my first big learning curve was when I bought my 8 unit, both in the increase in number of tenants and because it was a fixer upper with inherited tenants that had also been neglected and mismanaged for years.

We have created work instructions for every step of the process so we can maintain consistency in how we evaluate properties, communicate with tenants, market our properties, handle rent increases, manage property turnover, etc.....