Before building all six, it usually makes sense to pencil one prototype hard using today’s build costs, conservative ARV based on nearby renovated sales not new builds, and stress test rents or resale value.

That all makes sense, and it sounds like you’re approaching it the right way, especially stress-testing occupancy and being conservative on insurance and cap ex.One thing I’d focus on as you narrow in on the second home loan is that you’re making two decisions at once: 1. what’s cleanest for the deal 2. what’s most resilient for the balance sheet long-termSecond-home financing is often the least friction up front, but it can quietly lock in some constraints around future leverage, basis, and exit flexibility, especially given the insurance volatility. 

.• Start forming the “core four”For Phoenix rentals, this usually means:– An investor-friendly real estate agent– A solid property manager– A lender who works with investor products– A reliable inspector or contractorEven meeting one or two now will make things smoother when you’re ready to make your first offer.You’re doing the right thing by getting plugged into the community ahead of time — that’s often what separates smooth first deals from stressful ones.– Ridge Lending Group (Licensed in 49 states, excluding NY)

Selling would reset our finances, relieve stress, and give us capital for a multifamily purchase, but I don’t want to prematurely give up an appreciating OC asset. 

I think the best thing to do is to find a property (ideally close by to you) that is low risk, and "non-glamourous" and reach outt o the owner and just start the conversation...Stressing about funding etc only causes more anxiety...whereas maybe they are looking for a "quick" way out, for example seller financing (you pay them a set amount monthly as if they're the bank).

Focusing on these factors makes scaling smoother and less stressful.

Hi Amanda,I understand how frustrating and stressful this situation can be.

So in general, I'm not too stressed out about a few hundred dollars in monthly cashflow but I do want a long term stable tenant in the property. 

DC is not the place to wing this or make emotional decisions.One important mindset shiftYour first goal is not max rent, it’s low stress and predictability, especially since you’ll be living on the property.

I'm told the smell frequency decreased to once a week after I poured water down the drain as a temporary measure 2 months ago and then after I finally got the water running in there again 2 weeks ago there hasn't been anything.So case closed, I hope.You'd think this would have been easily fixable months ago, but it wasn't.