Interest on a land contract can be inflated for potentially higher future rates.

A lot of people mentioning the $10K you'd save by doing a 1031, but I'd go one step further and say that it's even more about future value.

In a way, selling turnkey's to investors is a way to earn revenue to fund future deals of their own.

If your guests leave reviews that the bed is uncomfortable or the couch smells or it doesn't look "homey," then you'll have a harder time drawing in future guests.

How many of these can you afford to do, if every one of any future deals needs its own new "cash out of pocket"? 

I'm a new investor in NC, mainly in Cumberland County but venturing in Durham/Chapel Hill area in the near future.

Thanks all and look forward to many discussions in the future!!

They'll give you a better idea about infrastructure and what type of work will be needed in the future.

@Matthew DrouinThat is a great position to be in.Now with regards to the refinancing options and how much you should take out, I'd say it depends on what your plans are.If you are planning on holding onto to that rental for the foreseeable future, you should stress test that property to figure out how much minimum income it needs to generate each month to meet your mortgage payments.That monthly would dictate how much you can conservatively take out after refinancing (and providing that you lender is OK with that too) without exposing yourself.Now if you have other deals that you want to pursue and you need as much cash as you can lay your hands on, you should take out as much as your lender would allow you to.Personally, I'd go for the option 1, especially if you have the  ambition is build a sound rental portfolio.

However, after reading about capital gains tax and depreciation recapture, I'm unsure how to account for these future expenses in my plan.