@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.

After rehab is complete, you can work with a lender to do a cash out refinance and get into a conventional loan where the interest rate will be lower.

NOI / cap rate = sales price, and sales price x cap rate = NOI.

When interest rates go up next week, it will be harder still.

BUT RARELY do they want to learn this... when rates got to 15 to 18% in the carter years.. to keep deals working I had to give my commission to the sellers and take back notes from them so they got some cash to induce them to sell .. and the sellers paid me monthly  Usually half of the payment No interest until paid..

If so, credit is available, but at a higher interest rate. 

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. 

Columbus may offer lower purchase prices, but as you mentioned, oversaturation from investors could affect rental rates and appreciation in the long term.Considering your interest in Philadelphia's vibe and your desire for a potentially better investment environment, it seems like Philadelphia aligns well with your preferences and investment goals. 

With today's interest rate, this may be a viable option, compared to buying physical RE.

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.