@Steve LeBlancYou will have to follow the interest tracing rules.If the new loan balance is the same, likely deductible.If the new loan balance is higher, you may need to track what the additional funds are used for to make it all deductible.

So there is a balance between using your cash, taking on debt and increasing your adjusted gross income. 

Out of professional courtesy, I will not state the true details of your situation and the balance owed to us.

If I did the 100% affordable units as rentals and did the balance 250-400 units as for sale, what would the exit be for the 100 units approved for affordable rental? 

Here's the good news, if you buy at a 10% Cap Rate, spend $100k to get the utilities split out and drop $50k/year off your balance sheet you'll add $500k of value to the property - half a million, Kathleen!

My number one best all time creative financing of a property that I ever did was for a purchase of a empty lot two blocks from the ocean in Long Branch, I was reading the local auction list in my city when I noticed a property that at auction two weeks before that opened at a starting bid of $25,000 did not receive one bid, I went to the auction thinking I was going to pick it up for $10,000, I get to the auction at City hall and when the bidding started for this particular property I waited to see who was bidding, a man started it and I waited until nobody bid to start my bidding, well this man really wanted this property and so did I, when we were at $50,000 I started to try and knock him out by bidding in $1,000 increments instead of $100 increments, every time I bid he bid a $100.00 more, this went on until my winning bid of $66,700 and it was now mine, now if you don't know much about city auctions you do not walk around with that kind of money, a 10% deposit is what this auction required and they give (I forget the exact amount of time maybe 30 to 45 days to pay in full) now comes the creative financing part, I take my high credit card limit at the time of $72,000 (I saved all the 0 % introductory rate checks if paid to another credit card balance transfer and pay off another credit card that had a small balance of $1,000 and overpay the bill by $68,000, the overpaid credit card company sends me a over-payment refund check for $68,000 (that is 0% for six months being that it was a balance transfer offer of 0% for six months) I pay in full for the property within the time allowed by the city, (this was in 2003) I refinance another property that I increased it's value with the creative equity work I put in and got a favorable appraisal that allowed me to park the debt into a 30 year mortgage, the empty lot sold in June of 2006 for asking price of $229,000 with a profit of almost $150,000 after commissions, property taxes and maintenance/lawn cutting.

Sometimes it’s a balance because you want them to show up again and finish.

Instead of fearing a crash, we should recognize this period as an opportunity for the market to regain balance and for potential buyers to find more reasonable pricing.

It will be a balancing act between debt service and rental income to keep the hack successful.

Of course there is a balance to everything, but there is no doubt in my mind that the news and media is disproportionate hyping up one side of the equation.Joe- interesting anecdote about the Sacramento apartment sellers seeking SF properties.