@Eric Lunsford  Generally the interest income from private lending is taxed at the ordinary income tax rate, just like earned income from a job or interest on a bank savings account is taxed.

Either way, I will call but wanted to see if anyone here had any knowledge....It will likely increase your insurance rate because of the business activity/liability. 

I am fortunate to experience great success with my first property, however, with interest rates being higher than what it was in 2022, I was wondering if any investors in my area are finding any deals in this current market condition. 

This is why you must evaluate properties not strictly off intrinsic #s like people did in low rate era.

There's a remote chance that the person who can't afford their payment can somehow afford to relocate the mobile home, but that's a VERY remote chance, offset in part by the higher interest rate, and in part by the surplus revenue received from the low vacancy produced in the park itself. 

There shouldn't be double taxation because rental real estate normally operates at a tax loss.The potential time that there will be a tax consideration is when you sell the property.However, your resident state(MN) will provide you a credit for taxes you pay to a different state.This will avoid double state taxation.In general, California state taxes are higher than Minnesota state taxes, therefore, you will be paying the higher of the two state tax rates, which is California.

How much gross leasable area, how many offices, current vacancy rate, age of building, any proximity to hospital or surgical center, what type of loan product for first lien, variable rate/fixed rate, the terms etc ie SOFR + what spread etc, current NOI, cost per square foot, replacement cost per sq ft, and any and all details you can share, I assume HENRY Capital compensation will be similar to your Fund 1, with 8% preferred and 80/20 split? 

Sorry for the bad news.At any rate, how to care for yourself.

I would like to be able to afford my whole mortgage at 100% vacancy in a disaster scenario, which puts me at buying houses less than 200k at the current interest rates including expenses and insurance.

Home prices have increased substantially in the last couple years and interest rates have doubled.