This investment property was financed through a locally trusted and long time friend that's a hard money lender with an 8.5% rate .I acted as negotiator, real estate agent, funded the purchase, and project manager for this rehab while partner was out of town working and kept him updated remotely.

This investment property was financed through a locally trusted and long time friend that's a hard money lender with an 8.5% rate .I acted as negotiator, real estate agent, funded the purchase, and project manager for this rehab while partner was out of town working and kept him updated remotely.

This is where I found the best rate for me in TX and I was able to lock in a fixed rate back when the interests rate weren't crazy high.

I plan to ease my way into REI by renting out my current house (with those COVID-interest rates!)

Question was assuming both properties (1M and 4M) has a 6.5% cap rate. 

. :')I'm curious if people do LLC and pay a higher interest rate, or do personal ownership and buy an ~$1MM umbrella policy to help protect.

Same if you are maxed out with your DTI currently, you can't take on more debt and qualify for a personal home.Now, keep in mind that interest rates are higher to slow down the economy.  

If you could provide a general overview or a step-by-step guide at a very high level—focusing on vacancy rates, capital reserve expenses, expense ratios, and any other crucial details—it would be greatly appreciated.

Look for recently rented units to get the most accurate picture.Rental listing websites: Utilize platforms like Zillow, Trulia, Craigs List, (In Utah, KSL), Facebook Marketplace, or Rentometer to search for comparable rentals and analyze rental trends.Local property management companies: Contact local property managers for their insights on current rental rates in your area.

You will more than likely get a higher rate then what you have now but its a simple short term loan that you can refinance in 12 months to lower the rate when rate drop next year (which they will).Use the cash for the DP but I would also advise taking out just a little more as a "What if factor" to cover any unforeseen issues or last minute repairs.