Deed restrictions tied to a mortgage can be tricky to remove, but it’s not impossible.

The third property has a nice cash flow.I am wondering if there are steps I can take to reduce the cashflow issues of the 2 properties before obtaining another property, like pay down the mortgages or should I just save the cashflow from the third property to pay for any future expenses?

Hi @Chris Garnes,I am an investor who has self-funded rehabs and also a licensed mortgage broker.

I could rent the other side for around 1,100 to pay down the mortgage.

One thing to be aware of is the FHA multifamily self-sufficiency calculation which determines if a property can generate enough rental income to cover its mortgage payments.

I heard that if you move the personal mortgages to an LLC they could get called and we would want to avoid that3.

You also cannot use a second mortgage (from HML/private lender) for a 2-4 unit non owner property. 

If you are selling for 1M after closing costs you could purchase two 500k properties in your exchange and own one cash and a mortgage on the second.

Only in community property states, can an LLC with only husband and wife as members elect to treat their LLC as a disregarded entity, which means all LLC income and expenses are reported on either Schedule C or Schedule E (as appropriate) as if the LLC did not exist.

Hey Frank, not sure who you're replying to but I want to emphasize based on what you said pretty much EVERY mortgage broker should have 10-20 options of lenders who can do this.