The way we look at it, if hard money can enable us to purchase additional properties more easily or with less of our own cash, then it can make sense.At this time we are actively looking for our third buy/hold.

@Risa Hind I'd like to second what @Ken Badziak has said (and of course I always like a guy that BP's with a glass of wine in hand ;) I would like to point out, however, that in addition to all the taxation issues you have the issue of reserves to consider.

It was completely rehabbed with an additional  $150k.  

I explored your website and couldn't determine for sure if we could help one another.

It was originally a duplex, but additional rooms were added.

Prior to applying for any additional business licenses in the City of Philadelphia, you will first need to obtain an Activity License.

Credit card debt is around $4k and we have one car payed off and one with about $10K remaining on the loan.We make enough to make the minimum payments on everything and have maybe an additional $1.5K a month.A lot of the suggestions in the student loan posts were to move into a duplex and rent the other side out.

However, the agent said that it can be legally a 4 unit home, with an additional unit in the basement.

When you hold a {rental} property in a corporation, income is taxed at the highest corporate tax rate - which increases the benefit of claiming the CCA deduction each year and mitigates the punitive aspects of the recapture.In addition to how you hold property, the length of the hold will also factor into whether you claim the CCA deduction; claim the deduction for a few years than stop; or do not bother to claim the deduction at all.  

In your example an additional 83k in cash on top of the down payment.