Eventually sold the operator the real estate that he financed with an SBA loan for $325,000. 

Sometimes you give away what you will eventually charge for. and it works out.

Your home has special protections under the law and I don't see that they can use their power to "regulate business" to work around them.We will see how it eventually shakes out.

Judges tend to lose patience with repeat unsupported filings because they look like delay tactics rather than a real attempt to reorganize under Chapter 13.In practice, one of two things usually happens next: either the plaintiff forces the issue by asking the court to proceed due to the lack of any actual bankruptcy filing, or the court eventually orders the sale to move forward or the funds to be returned.

Kind of a big risk though IMO: potential liability if someone is in the house when it goes, or causing an environmental disaster that would need to be cleaned up, or just accruing big fines from the town and eventually being forced to demo it like what happened to that mansion in Wellfleet… https://r.search.yahoo.com/_ylt=Awr9.tl7gUVpneYRJhNEDN04;_yl... is actually still on my mind. 

We bought a townhome and immediately converted it into a mid-term rental.  

It’s a gamble.The best BRRRRs still cash flow even if the refi comes in lower than expected.Section 8 tilts the scale.Predictable rent and long-term tenancy stabilize both strategies.Straight rentals become easier to manage.BRRRRs become easier to refinance.But the math still has to work without appreciation.Our conclusion:Straight rentals scale faster initially.BRRRR scales faster eventually, but only for disciplined operators with real systems.The fastest growth doesn’t come from choosing a side.It comes from using the right strategy at the right stage.Where are you in your investing journey right now, stacking rentals or recycling capital?

That’s a huge advantage none of us will ever see again unless rates fall off a cliff.When rates eventually drop, that’s when you get strategic: cash-out refi, pull out $30–50K tax-free, go buy another property when the numbers make sense. 

The best strategy for you with this in mind might be converting your current primary to a rental and buying another property to house-hack. 

But like a lot of folks, we dipped our toes into the short-term rental game a couple years back when the numbers looked strong.We converted six of our smaller units, one bed, one bath places in good parts of town, into Airbnb's.