If your return for investing in another property is greater than 8.5%, than it would be beneficial to invest rather than pay off the debt (would want a sufficient cushion above 8.5% to justify the added risk and work of investing in another property vs simply paying off debt). 

Sounds like you’ve already built a strong foundation in multifamily and have a unique edge with your commercial debt background.

I look at it as a way to limit carrying costs on a short-ish term deal until I can sell or refinance into long term, fixed rate debt. 

😱This is why estate planning around tax debt requires sophisticated timing strategies, not calendar watching and hope.The IRS has a loaded gun pointed at your estate plan.

They may get an appraisal that allows the BRRRR to appear successful but they will never achieve the same result in a sale as the  the inspection report and sale process of selling to the entry level buyer (if one even exists) is far less forgiving.

So, if the 2nd does the foreclosure, it may say the opening bid is $65,000 because that is what the 2nd is owed, but the winning bidder inherits the debt for the $325,000 1st, which may or may not be in foreclosure. 

Debt is generally the most affordable capital, so it makes sense to use the leverage but do so responsibly. 

I would focus on increasing that and getting rid of consumer debt before looking or thinking of real estate.

We’re planning to be almost debt-free within the next year, and at that point we’d like to revisit our options. 

Picture this: Elderly parents own the family home but have unpaid IRS debt with a federal tax lien filed.