Rental bought in 2023 and initial return.For assets - Cash, depreciable assets less accum deprn, landFor liabilities - Open credit card balances (Charged rental improvements and expenses on 0% interest credit card)Partnership equity - Cash contributions less net lossMy assets are greater than liabilities + partnership equity

If the ROI seems low or if the renovation costs are prohibitive, selling might be a more practical option.Cash Flow Analysis: Currently, your property isn't cash-flowing positively when considering your mortgage, management fees, taxes, and other expenses versus your rental income.

Success for restaurants: lots of TI budget, low rents, and calling retail brokers.  

This combination of affordability, economic stability, and location makes Parma compelling in my research.Taking a deeper dive into the rental market here, I thought this could be a unique investment opportunity because despite a seemingly low occupancy rate of 23.90%, the rising rental rates highlight a robust demand for single-family homes (SFH), presenting a lucrative avenue for investors like us. 

The risk I mention is low, but it is a very real risk.

Cap rates seem pretty low relative to mortgage interest rates.Has anyone seen this model work in this economic environment?

I'm looking for a new lender for this HELOC product and I see this as the only solution if I'm going to keep my low-rate, first position mortgage intact.

I plan to keep my LOC low to have space to weather a storm when it comes. 

And another great thing about this loan is it is not reported on your personal credit so, it does not affect your DTI. 

Meaning, the lender will usually determine the average tax % for the area after improvements have been made and they'll use this amount to determine your debt ratio as opposed to the original/artificially low taxes that are assessed on the raw land.