Typically private money balloons require 20% down, at least, and this reduces the risk of default.

One of our STRs will be converted to 30+ day furnished rental which I suspect will reduce revenue significantly.  

Remote work is reducing the numbers of people commuting to work. 

@Mary Paras the fine will be reduced and you will not have a record ,,, i am not speculating as I have many years of dealing with 100s and 100s and 100s props,,,,, 

I did pull money out over a year ago (which reduced our rate to 2.75%) and put some into a Real estate syndication.

This has reduced my overall living expenses by 75%.

With increasing prices, 400k is difficult to cash flow but will still significantly reduce your housing expense.If cash flow is extremely important, couple levers you could pull:(1) Rent out the master to close the gap(2) Consider 5 bed and you'll cash flow at that price range.

Whether or not it can reduce your taxes in the current year depends on multiple factors and is case-by-case.Example: you're single, have a full-time W2 job making $150k.

Now to current market, every source is predicting reduced appreciation nation wide for 2022 compared to 2021, but the various predictions on San Diego have it continuing to out perform the national appreciation.  

Theoretically, you can reduce your ADB by funneling your entire take-home paycheck into the LOC account.