It helps you decide if the risk to your capital is worth pulling your money out of a CD, etc. 

It's one of those situations where everyone knows everything about everyone else and i was definitely not aware of this dynamic when i decided to buy and move in.Getting back to my tenants/neighbors dilemma. 

You would still get to deduct the interest related to 450 k loan against your rental income. 2) The additional loan that you will take when you take out 750k in equity is what you will have to decide.

I decided last year to embark on a different strategy than my normal buy and hold investment strategy given that the market for buy and holds in California has become a lot more difficult where we have seen CAP rates move to less than 4 in some areas (San Francisco, Bay area) and only 6-7 in sub markets such as Sacramento and Stockton.The math has been pretty straight forward.

Mason, Your market assessment is exactly what I did before I decided to build my portfolio in Meridian, Idaho 10 years ago.

I’ve been listening to the BP podcast now for several weeks on my long commute to and from work and decided to start a profile and introduce myself.

I've changed 2 property managers in past 3 years and both treated the property as 'just a number' - so I decided to take it into my own hands and stay on top of repairs and tenant issues.Thanks.

Then and only then do I figure out what to do with the asset ( flip, brrr, sell ) and decide how to finance the decision.  

We've decided to go in a different direction with Property Management, and we're going to exercise our X day notice now with a last day of X.

And if you decide in 6 months that it's too much to keep up, you can rent it out long-term in the summer when that season starts picking up.