**Tax and Term-Free Loans**Are you leveraging the advantage of tax-free loans against your policy’s cash value, with the added benefit of no mandatory repayment terms?

Yes, the right way as not to be taxed more on your property value.And do you need a bank account dedicated to the LLC?

Location: Chesapeake, VA (large military town) Market Value: $360,000Loan Balance: $245,000Equity/Second position note: $115,000 (30 30-year amortization / 10-year Balloon Payment, 6.5% Interest, $727 monthly payment) - Bringing cash for this would save a ton of money for the buyer.Rate: 2.25%Years Left: 26Current Monthly payment: $1,300 (including taxes/insurance)Current Rent: $2,000Scenario 1: -If you were to purchase with a new VA loan at 7% interest at market value your monthly PITI would be approx.: $2,757-If you were to assume the loan and I carried the second note at the above terms your monthly PITI would be: $2,027Saving: $8,760 per year.Scenario 2:-If you were to bring the same $115,000 as a down payment on a conventional loan you would pay: $1,992-If you were to assume the loan and bring cash for equity position your monthly PITI would be: $1,300Saving: $8,304 (with no need to refi in the future)Since this is a hypothetical situation I'm going to give my number based on nat. average homeownership of 13.2 years.

If you are interested in moving your entire portfolio, would you peel off (tax purposes) or dump everything?  

There are only 2 blocks on West Pomona Street and the two blocks total 90 tax parcels.

But considering all the expenses (PM, leasing fees, cap reserve, maintenance, taxes, etc), it has been showing as negative cash flow. 

This is by no means to brag but I am living out my vision of being business owner, building long term wealth at a young age through real estate and having the freedoms to create my own schedule and building for the future for myself.

One thing to consider when you are budgeting is the taxes and insurance.

If it's important to be near the Bay area then maybe consider the Tahoe Reno, NV market because it's only a few hours away if you need to go to the office and it offers a landlord friendly environment, low property taxes, and no state income tax.

My insurance and property taxes are also set up in this manner.