If you give them $1M and you collect $100k in interest, that interest is taxed at ordinary income rates.

Thx Bruce, Sorry, not sure how the 2% interest rate idea snuck in there.

Everywhere in the country will be different with labor and material rates .

Do you have a general idea of the interest rate on the HELOC either for your primary house of investment properties that you could get?

The higher your credit, the better rate you will receive on your loan.

I just sold a duplex for $520,000 in four days, even though the current income is $1800/month and the market rate is only $3,000/month.

Seller financing does not always sell for more money and if there are big price declines then you may end up having to forecloseMy recommendation is to sell it with borrower getting traditional financing and put that $ in a tax friendlier account than loan interest = ordinary income rates

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

The interest rates are high now.

I learned all of this from a now defunct group in Berwyn of old-school building owners.