Do you have other ways to decrease your expenses or increase your income aside from real estate? 

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.  

You know this and the reason I am saying that I am considering in getting a real state license is the connections, the access to listing off market and possibility of earning commission that I can use to increase my portfolio.I think that being an investor agent will help me build a reputation and that can be good or bad.

Look at SCI, we had a lot rent increase in Nov. 2017, SCI came in an purchased it in Dec. 2017 and increased the rent again.

The problem is that your debt payments are going to basically wipe out that $400K profit unless there is room to increase revenue or reduce expenses.

This has been true about every technological change in the industry - those who fail or refuse to adapt lose while those who embrace new tech win.

The shorter the prepayment term has an impact on increasing the rate.4.

We are asking the current tenants to leave as the property is not in optimal condition we like to have our rentals and we would like to fix it up to increase value and rents.

In the next 4 years my income will drastically increase, but I don’t want to wait 4 years to buy another property that will be an investment.

What the investor will have is a long term appreciating asset; that will provide an increasing cash flow as rental rates increase, and steady amortization as the note is paid down.