Quote from @Andrea Russin: A blanket loan would be a good way to spread the equity however it would limit your ability to easily exit one property without restructuring your loan.

That backs out to 10-15% cash on cash return in most cases.

You'll need to report this recapture on IRS Form 4797 in your 2025 tax return.

Also, there may be a very good investment channel that reviews cash on cash return in Lynchburg, InvestLYH. 

It's interesting that Obie returned a $200K value but they do allow editing so I was able to correct to an amount I feel was midway between principal and replacement value.

@Franklin FletcherThat's a great return!

Excluding the periods of “tulip bulb” irrational exuberance, a property must produce enough of a risk adjusted return to satisfy both the ROI demands of the “limited partners”, and the income/time requirements of the sponsor.  

I see what you mean about offering a higher return to a potential investor, especially if they are not familiar with my character/experience in the industry. 

You can get a much better return on your investment elsewhere and with $500k you can buy 3 homes or a 4 unit.  

@Tyler GarzaYour strategy has a solid foundation, but a few key refinements could help you maximize returns while minimizing risks.