Borrowing from the equity must be done wisely or you will end up with negative cash flow and at high risk due to over-leveraging.NOTE: I use interest rates much lower than they currently are in 2024!

Is one more attractive than the other to potential tenants?

Currently I’m new as far as leveraging what I have and moving forward from finding potential great deals to closing deals with creative financing.

See Renofi as a potential avenue which appears to be geared towards homeowners looking for renovation funding.

Would I be better trying to purchase a townhome somewhere in the DMV with a basement that I could potentially rent out?

We’d rather take low double digits passive with lower risk over 25-35% active with the risk of principal loss.

The nasty tenant is on a month to month lease but I’m not sure if I should non-renew or just risk losing other tenants.

So far, I have received a much better response than expected in my inbox and potential connections. 

But I do know what it looks like when someone is about to be separated from a lot of hard earned money of theirs... and YOU potentially look like THAT person.  

You took all the risk.