Let's use that as an example. 20% down is $43,000 plus lender loan origination fees, closing costs etc is going to push you over $50,000 cash out of pocket.

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

When this person goes bankrupt in the next recession, this loan will be part of bankruptcy proceedings.

Quote from @Devin James: Im currently learning this lesson with New Builds that have taken twice as long to complete than anticipated.....Finishing a Real Estate project ASAP is critical because...1) Holding Costs add up quickly- Loan Interest- Property Taxes- Insurance2) Investor Capital- Our financial projections are dependent on how fast we can turn our investors capital.

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.

House hacking is using an owner occupant loan to get into a home or a 2-4 unit property.

These are the key to getting a loan.  

Refi the house so they can continue to live in it, they will get the best loans on their primary residence.

In Ca many loans are done through fractionalization method which is not that common in other states and illegal in some.

Loan interest is deductible based on the use of the loan, not the asset securing the loan.