I do undersand the Macro, and the cycle of debt and why...butI feel like everyone is Hyping a Housing downturn in the works and in Pima County it feels like we are flattening out. slight declines in asking prices but, not at a loss. some owners who have overpaid for luxury properties (not rentals IMO) are underwater compared to rent. 

Often times these policies offer better coverage limits and protections at comparable cost to NFIP policies. 

. $245 per square footRental & ownership perspective:This type of property could work for:An owner-occupant living in one unit and renting the otherFriends or family members purchasing togetherOr a buyer holding both units as a long-term rentalAccording to HUD Fair Market Rents, a 3-bedroom apartment in Exeter in 2024 rents for roughly $2,500/month (actual rents may vary).Financing assumptions (illustrative only):Conventional loan with 5% down (~$42,500)Estimated closing costs of 2–3%, bringing total cash needed to roughly $65,000Exeter (like other towns in the SAU16 district) has higher-than-average property taxes compared to the stateWith 2024 interest rates in the high-6% to low-7% range, estimated monthly payment (principal, interest, taxes, insurance) would be around $7,400.Who this type of property may fit best:🏠 An owner-occupant looking to offset housing costs🤝 Friends or family co-buying to access a high-quality Exeter property📈 A long-term investor prioritizing appreciation and stability over short-term cash flowCurious to hear others’ thoughts 👇Is mid-$800k’s what you’d expect for a 2-family in Exeter today?

Compare that to having to put 20% down on a house using bank financing which on a $400,000 property is about $80,000 plus closing costs and carrying costs.

I’ve seen some internal models comparing buy/hold with and without cost seg where the biggest delta shows up in early-year IRR once timing and reinvestment assumptions are layered in, but you’re right that time value of money and behavior assumptions drive most of that outcome.

I am concerned with option b just because the interest rate would jump from 3% to 5.7% and over the length of the loan I would be paying double the amount of interest compared to the HELOC.

Most of the investors we work with in Michigan are using DSCR loans as rates are comparable to conventional rates for the most part but way less involved to get them.Our preferred lender in Michigan also covers Ohio.

You really need to run your own comps and compare the condition, amenities, and level of finishes of your unit with the comps (ideally using the last price before the comp went off market).

When all of those elements are actually in place, it’s very unlikely for an LP to be completely wiped out.There’s also a common theme among the LPs who do get wiped out.

Looks like people are more interested in deals than comparing note, especially as a virtual wholesaler.