Hello All, I have a client asking if they could buy a portfolio of 5 properties (at a "packaged deal" rate) and sell off two of them to recoup some of the initial down money needed to buy them. 

It's probably going to mean paying points at closing, a high rate, and a serious pre-payment penalty (like 5 years). 

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.  

FYI, we were able to get a 5.5% rate from their recommended lender with 20% down.  

If you house hack a single family residence by renting out  a room or two then you would have no property tax but if you buy a duplex you might have to pro-rate the property tax.  

Keep in mind a HELOC rate will be much higher because of the CLTV and risk.

If you're considering hard money loans, they can provide fast funding, but with higher interest rates and shorter terms.

But higher tax rate in PG county. 

While less than 10% of the mortgage industry offers 40-year mortgages, here's something to factor in: they often come in with a rate increase of 20-35 bps.Assume 35 bps.$300k mortgage at 7.25% (30-year): $2,046$300k mortgage at 7.6% (40-year): $1,996Technically, it lowers the monthly, but not by much once factoring in the rate adjustment.

This would allow you to maximize tax deductions at ordinary tax rates.