Purchase price: $640,000 Cash invested: $1,200,000 Turned a shuttered and rundown 13-unit waterfront motel into a brand new vacation destination with added lakefront "tiny homes".

with help of AI:for a room to be legally considered a bedroom in California according to building codes, it must meet the following key requirements:Entrance: The bedroom needs at least two methods of egress - it should be accessible from inside the house (commonly through a door), and have one other exit like a window or door.Ceiling Height: At least 50% of the bedroom ceiling must be a minimum of 7 feet in height.

Looking forward to the responses and building meaningful connections. - Brian

Does anyone have advice or tips for me on what the best way for me to build my REI knowledge would be so that when I do have the adequate funds, I am already equipped with a very good base knowledge.

Option 1:Pros:Simplicity: You avoid the potential complications of alerting the lender.Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.Cons:Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.Option 2:Pros:Transparency: Being upfront might build trust with the lender.Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.Cons:Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.Given the pros and cons of each option, but a cautious approach might be best:Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause.

This is through a conventional, no PMI loan.Investing in Commercial Real Estate:Commercial properties include office buildings, retail spaces, warehouses, and more.

I have read many posts, but many are old and may not be looking at a single building vs complex. 

However, here are some considerations:Permitting: Unpermitted structures are often a red flag for lenders because they may not meet local building codes or safety standards.

I'd like to keep $100k equity for myself and sell the other $500k to equity investor(s) so I can keep the excellent mortgage (fixed at 3.25%) and take advantage of the cash flow and build more equity.

I was fortunate to buy it when prices were much much lower and got a great deal on it so we don’t have a mortgage on this building but if we did the cash flow would help with that as opposed to taking a distribution at the end of the year.