Interest is low on the house and has a great cash flow, always has been.

RE is a long game, and congrats on having $250K in cash to spend!  

@Lea RamirezDSCR loan probably your best option but you will need to show the property positively cash flowsIf it were me, I would be more focused I.

After we move in 4-5 years, I would rent out both units.Pros:Potential for long-term appreciation in San Diego.Cons:The property will not cash flow enough to cover the mortgage while we are living there.After we move, it would provide very low returns and minimal cash flow.Would require a significant portion of my liquidity, making it harder to invest elsewhere and grow my rental portfolio.2.

However, if you only consider the 65% of your mortgage covered by the tenants, you're not necessarily cash flow positive.

Hello everyone, I am completing my second BRRRR and looking to do a cash-out refi.

Know the lenders requirements for the loan types you will need.For instance you may find you need to have liquid cash of 9 Months P&I and 100% of the loan amount as your personal net worth in order to avoid personal guarantees on the loan, and your retirement accounts may not count towards your liquidity.Know the requirements of the loan products for the apartments you want to buy.There are no books for that, that I know of--just lenders info.Because without that all else is just scholastic exercise.Good Luck!

Seller saids that tenant pays cash first of every month and has been a very good tenant.

I have the opportunity to purchase a 13m SFR portfolio, however, most of my available cash is deployed into a 1031 and BRRRR deal.

As for audits, the IRS may scrutinize high-income taxpayers claiming REPS, so detailed time logs and supporting documentation for material participation are crucial.