Costs depends.

While reading your post I was thinking "sell the Cali properties", but with 3-4% interest rates (and I'm assuming those are long term fixed rates) you will be best off to cash out refi (non-tax event) and use those funds to buy multifamily.

In my experience, good design is good business; building something with character stands out to potential tenants (increased rent) and helps lower vacancy rates.

So let's assume you take out a business loan of $80400, just as an example, as a down payment on this house.The business loan then, would be $479/mo for 30 years with an interest rate of 6% according to the calculator on bankrate.com.As for the property, there's 5 units.

Based on conversations, CRE could be a great option long term but I may be locked into a lower income in the short term and the potential for earnings are more dependent on my production in the residential space.

If you are going to keep a tenant that is difficult, at least charge them market rates!

@Dante AndersonObviously it depends on your objectives, the deals on both sides, ..., which we know nothing about.

I agree with Mike that it’s a personal decision that depends on your goals and what opportunity costs there are for having this much trapped equity with a low ROE.

Hey BP family,I am new to real estate investing but would love some experts insights so I don't get burned on my first dealThis is the property: https://www.zillow.com/homedetails/724-N-22nd-Ave-Bozeman-MT...My thoughts are my wife, 8 month old and I could live in Unit A for a year or two while we rent out Units B & C to help cover the mortgage payments until we build/buy a more desirable family ranch home with min 10+ acres which we've been looking for but have yet to find.My hesitation is I've never been a landlord and am reluctant to get in over my head with property problems while simultaneously growing an online business and being a new father.After some negotiation we counter offered 895k with a 2-1 rate buy down for 20k and the sellers have verbally accepted but since our offer expired we need to resubmit.

Hi Brad, I'm from the Hospitable.com team (a top-rated short-term rental property management software) and we had a great webinar on taxes a couple of months ago - I recommend checking it out here.