Sometimes those investors are big government entities such as the Federal Reserve or Fanny and Freddie (F&F are still under government conservatorship, since the great financial crisis, although this should change in the future), which buy the packaged mortgages (known as mortgage-backed securities, or MBS) to provide liquidity to the bond market, while also allowing the bank to make more loans for more people to buy homes (yes yes this is simplified process, hold your emails people).

This structure actually simplifies your taxes.  

So it's best to wipe off debt as you age and simplify your life.

You guys have done an outstanding job of simplifying this material.

@Ethan Whaleyi'll try to simplify. 

Given all that, I’m curious how you would attack this:– Would you simplify it (no ADU, different unit mix, or sell instead of hold)?

Using a HELOC to buy properties in cash can definitely simplify things, avoid loan approvals for each purchase, and give you negotiating leverage, especially in markets where cash is king, but it’s important to be mindful of risk since your primary home is on the line and interest rates can fluctuate.

Quote from @Andrew May: Hi Sandra,That's a great question that we've all faced.After making countless mistakes, I simplified my approach and strategy.1) Identify your objective and strategy/strategies.

Financing can usually be arranged through local banks or national lenders familiar with investor loans, and some investors do cash purchases to simplify things.

While what I do is very complex with a huge amount of math and data into it, it really comes down to a very simplified ethos of things; have what people value, where people want to be, and they will happily reward you for it, care for it.