In this case, since the capital stack includes 70% debt, it's likely that some portion of the income generated by the preferred equity investment could be attributable to UDFI, potentially triggering UBIT.However, the preferred equity in your scenario may be treated differently from common equity, especially since there is no upside participation beyond the fixed return.

@Jordan Townes - Looks like the bank is denying the HELOC because they know that taxes are likely ahead of them and the HELOC would be in second position to the taxes.

It sounds like you are hoping for something to just appear.

There are plenty of creative ways to avoid some of the worst case scenarios in real estate like foreclosure.

I’m also open to any advice or help that may benefit someone like me who’s totally new to real estate or better yet new to investing and creating a portfolio all together.

My goal is to learn from experienced members, exchange insights, and build connections with like-minded individuals who are passionate about growing in the real estate market.

I’ve been listening to the Bigger Pockets Podcast for about two months now and I feel like I have learned so much already.

I think the top factors are type of home (comparing single family to apartment is no longer done), overall size, and interior features like central AC, approximate age of renovation, etc.

It doesn’t sound like a good deal if it won’t cash flow with 20 percent down; but it depends on your goal ..

I feel like the market here is very tight, and most of the properties I analyze are tight or don't make sense.