one option is to continue renting out all four properties to cover mortgage payments and generate passive income.

The holder of the note makes no real difference; in Jane's case, it might be more advantageous to her to hold the note than sell outright depending on how she can absorb the sale from a tax perspective; in your case you don't have enough income to do a conventional loan so getting a seller carry can give you more properties.

So Erik has some great real world advice.Remember that you can pick a better area in other parts of the country and still self manage.Your idea of a 4 bedroom house is good as that will generate more revenue than a smaller property and appeal to more people.

Increase your income, reduce your expenses, save consistently until you build up enough to invest.

By selling the property now, you can avoid the time, money, and effort required to make repairs and potentially deal with ongoing property management responsibilities.On the other hand, if you are willing to invest in the repairs and potentially hand off the property to a property management company, you may be able to increase the value of the building and generate higher rental income in the long run.

If you're looking for basic income/expense tracking, I'd suggest checking out Stessa.

Most lenders but not all, should use the existing 2nd unit lease at 75% of gross for extra income to qualify on either loan types.

However, it demands strategic and cautious handling.The advantage lies in accessing capital without selling existing investments, but the risk involves putting your primary residence on the line if you can't meet the loan obligations.A HELOC should not be your primary choice, as it carries more risk than a traditional mortgage with higher interest rates.Considering your stable income and disciplined approach to investing, focus on saving for the down payment.

I was looking at Japan from a generational standpoint.

I don't know your market, but I am gathering that prices for those types of properties are just too high relative to the rents the apartments in those properties can generate.