With a rate of just 3.2% (and even lower after taxes), you’re coming out ahead while the lenders are taking the loss.

.: Quote from @Matthew Hamilton: When it comes to how income and losses show up on your tax return, everything generally falls into one of two categories: passive or non-passive. • Passive losses can only offset passive income.• Non-passive losses can offset both non-passive and passive income.W-2 income is non-passive, and in most cases, capital gains from selling investments (brokerage accounts, crypto, etc.) are also non-passive.Real estate losses, by default, are considered passive.There are two main ways to convert those real estate losses into non-passive losses (which is what you’d need to offset W-2 income):1.

We had millions of vacant homes nobody needed (2025: we are 3-5 million homes short) and nobody had equity, forcing foclosure sales (2025: about 40% of all homes have no mortgage, most of the rest is equity rich, very few do not have enough equity to be threatened by foclosure)If I have my histroy right 1989 was mostly a commercial real estate recession: early 1980's tax code allowed w2 income to get wiped off by passive real estate losses causing a missive overbuilding of strip malls, office space and apartments to generate losses for high income earners.

Fortunately I was able to get out of my contract with comparatively minimal loss. 

I want to bridge finance and purchase with minimal down, with the idea to do owner-occupied conventional refinancing for these next 4, but purchasing them all in the next 2-6 months.

@Rob White,  Your ROE might be slightly increasing with a payoff because of the loss of the very high monthly mortgage payment for relatively little in debt (your mortgage payoff is based on when you bought the property). 

As with all the other investors with CALM INVESTMENTS was never compensated for any of my losses, which was every penny put in his Company.

In return, I’d give him a percentage of the profit once the flip sells.Since this would be my first flip, I want to make sure I structure everything properly and minimize risk for both of us.

This is a minimal effect work on improving your income limit (available credit) and utilization.

And assuming even a half-percent increase for a 50-year term, there is actually a minimal amount of monthly savings a buyer would achieve.