But they won't typically cash flow at all at 20 to 25% down, especially with the significant rise in property taxes in Madison.Which zip code in Madison? 

I know I will take a penalty and pay back taxes.

As the lawyer above mentioned the info is vague.

Proceeds from that sale are tax deferred and it made buying up on an asset easier.

Hello Everyone I'm new here seeking out strategic ways to invest in Tax liens in the DMV...

 16 terms you need to know in commercial real estate:1.Internal Rate of Return (IRR): A metric used to estimate the annualized return on an investment based on the timing and magnitude of cash flows.2.Cash-on-Cash Return: The annual income generated by a property expressed as a percentage of the initial cash investment.3.Discount Rate: The rate used to discount future cash flows to their present value in financial models; often represents the required rate of return.4.Capital Expenditures (CapEx): The funds set aside for property improvements, renovations, or major repairs.5.Gross Operating Income (GOI): The total income generated by a property before subtracting operating expenses.6.Operating Expenses: The costs associated with managing and maintaining a property, including utilities, taxes, insurance, and maintenance.7.Debt Service Coverage Ratio (DSCR): A measure of a property’s ability to cover its debt payments, typically calculated as NOI divided by debt service.8.Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the property’s appraised value, used to assess risk in financing.9.Equity Multiple: A measure of the total return on an investment, calculated as the ratio of total cash flows to initial equity investment.10.Residual Land Value: The estimated value of land after deducting development costs and desired profit margins.11.Sensitivity Analysis: A technique used to assess how changes in key variables (e.g., rent, expenses, interest rates) affect financial model outcomes.12.Operating Pro Forma: A projection of a property’s income and expenses over a specified period, typically used for budgeting and financial analysis.13.Cash Flow Waterfall: A structured distribution of cash flows to different stakeholders in a real estate project, often involving equity investors, lenders, and developers.14.Leverage: The use of borrowed funds (e.g., a mortgage) to finance a real estate investment, potentially amplifying returns but also increasing risk.15.Equity Investment: The amount of money invested by equity partners or investors in a real estate project. 16.

Meaning, preferred equity often gets paid a fixed rate of return (like debt) but can also still earn tax and depreciation benefits (like equity).

If your "DTI is going to scare away any bank," then you follow it by saying both properties are cash flowing then what I surmise is the properties might cashflow in real life however on paper/tax returns you're probably not cashflowing otherwise these rentals would be improve your DTI (going down % wise) if they're actually cash flowing.So the above doesnt add up, did you get an adverse response from your current lender contact?

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Don't get me wrong I love the software, but I have one tenant, it's one condo, can't I just hand over a simple spreadsheet with all necessary tax documents to my accountant and call it a day?