I don’t see the sense in paying off my own house at presumably low interest rates, and exchanging that for a higher rate, variable interest line…unless I have a really good plan for not losing my house.  

JP Morgan once said MArkets exist to transfer wealth from the impatient to the patient

Our strategy is to improve the property and raise rents above the HUD rate. 

I believe there are high interest bearing amounts that are similar to CD rates but they give you the flexibility of having all the funds available to you immediately.

In my mind, it is simply a hurdle rate.

So we've got a return of 23% on our first and a return of 175% on our second.TL;DR - Are owning free and clear assets better than having high rate of return? 

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

As a company we help investors with: - Sourcing properties in areas that should appreciate, have lower vacancies, and higher room rates based on our data from current properties.- Starting properties from the ground up with our expertise in what is needed for a rental to last and run smoothly, from simple furnishing to complete remodels/renovations.- Running properties as the businesses they are meant to be.

Private investor from purchase price and most of the rehab with a lending rate at 2 points about prime interest rate.

Private investor from purchase price and most of the rehab with a lending rate at 2 points about prime interest rate.