This will allow you to take on bigger deals with your cash on hand.LTC is a ratio with the potential to limit your loan amount.

One thing to be mindful of is the cash flow of the property as you get into higher LTVs.

I’ve been around real estate for decades, and I read in The Economist once that in lively markets like Charlotte, folks will pay a premium for a comfortable room if you’re near major employers.A friend of mine tried something similar out in Austin a while back.. he’d inherited a 4-bedroom property and split it into individual room rentals.

@Ryan Cousins it's really going to depend on YOUR analysis/projections of what you think the property will be worth in the future.You'll want to compare that to any capital gains tax-savings if you sell now.

Let’s swap some stories and tips in the comments.

What made you interested in investing in this type of deal?

This could turn a potential loss into positive cash flow while protecting your property’s value.

@Eric Andersen definitely put weight into what @Michael Baum wrote and do your own research on the city regulation/zoning.

Paper where the current administration is focusing on.You own a property where, regardless of the interest rate, you get $250/m cash flow.

@Anthony VaganosI haven't checked this in a long time.