- If you want to live in one unit I would not get an LLC because you'll lose your homestead exemption and your capital gains exemption when you sell.

I could be wrong, but less chance of deferred maintenance issues due to gradual water leaks in bathrooms in upstairs townhome style.I agree that 5 caps aren’t the best area, but if it’s a 5 cap and two units aren’t rented, that provides some immediate increase to income with a relatively low capital outlay.

Cash on Cash Return - 10.19%Thanks in advance for your thoughts - RobertReturn (IRR):11.73% per yearTotal Profit when Sold:$217,855.15Cash on Cash Return:660.17%Capitalization Rate:7.69%Total Rental Income:$471,420.00Total Mortgage Payments:$245,284.85Total Expenses:$125,280.00Total Net Operating Income:$346,140.00 First Year Income and ExpenseMonthlyAnnualIncome:$1,350.00$16,200.00Mortgage Pay:$681.35$8,176.16Vacancy (3%):$40.50$486.00Property Tax:$102.17$1,226.00Total Insurance:$62.50$750.00HOA Fee:$166.67$2,000.00Maintenance Cost:$16.67$200.00Cash Flow:$280.15$3,361.84Net Operating Income (NOI):$961.50$11,538.00

real estate is anything but no work  yes limited to no physical work but to be able to live off of your investments takes time and frankly more seed capital. but the biggest bang for your buck with 100k is going to be using it as a downpayment and do fix and flip... but you need to be very cautious.depending on your market this could be one or two flips that would make 20 to 30k each and you could do two a year.not sure if 40 to 60k a year income would do it for you.. some it will some it wont.. rentals NO way no how not in todays markets..at least to start.you could do the BRRR pay cash and refi.. but yoiu need a job and great income to refi.. ?

HELOCs are still tax deductible under the new tax law but only for capital improvements on your personal residence.

- If you reach a certain threshold of reserve funds for a given property, do you pause saving until some significant capital or maintenance expenses occur?

Above the $250/$500k exemption, additional gain would be taxed at capital gains rats, not ordinary income rates.

Sell it.Either way I’d use the cash for a down payment on a “new” home for the family as we have outgrown our current house and then rent this one out as well.The big capital expenditures (roof) are what scares me but then again paying fees for selling also adds up quickly.I’m going back and forth, please help. 

It is my understanding that job loss would allow you to prorate the capital gains taxes on my residency.  

Then I might not reinvest capital, or if I have a group of partners we might have different reinvest criteria, so I don't really ever look at MIRR.