Real estate has high transaction costs.

Specifically on whether the high interest rates will lead to an increase in mortgage delinquency rates similar to what we saw during the 2008 great financial crisis.I plotted the chart below (Figure 1) to compare Fed Funds rate to unemployment rate and mortgage delinquency rate. 

I would run numbers with pretty high interest rates if you want more cash out than 70-75% like @Brie Schmidt mentioned.

For other folks, here are some other entities that would, if you sold the property to, have negative tax consequences: YouYour spouseAny of your lineal ascendants or descendants (parents, children, grandchildren, and the spouses of children, grandchildren, — including legally adopted children)Any investment providers or fiduciaries of the IRAAny entity (like a corporation, LLC, or trust) where a disqualified person owns more than 50%Any entity (like previously listed) where the IRA account-holder is an officer, director, a 10% or more shareholder, or a highly compensated employee

I wouldn't do it unless your market is highly competitive and it is necessary for getting applicants.I have my tenants handle their own utilities for a couple of reasons:1.

I started looking for rental properties but was quickly discouraged at the super high prices of everything in my area.

If you are telling people you pay 10% interest and they are used to getting 3-5%, their mindset may instantly think your proposal is high risk.

We’ll have a realtor on the team and set up systems for the contractor team to provide us with video and picture updates. 

Most house hacks in high cost areas don't really cash flow.

This strategy can be lucrative in tourist-heavy or high-demand areas but requires active management.Lease Options:Enter into an agreement where you lease a property with an option to buy it later.