I wanted to share a recent deal structure that may be helpful for anyone sitting on equity in a high-cost market.A client recently:Did a cash-out refinance on a California primary residenceUsed the proceeds to purchase a single-family rental in MichiganIs closing in early FebruaryWhat made this work smoothly:No relocation requiredProperty manager is picking up keys immediately after closingClient transitions straight into passive monthly incomeNo short-term rental or active management involvedThis wasn’t about chasing appreciation—it was about:Redeploying trapped equityImproving cash flowKeeping the setup simple and scalableI’m seeing more CA homeowners explore Midwest rentals when local numbers no longer make sense, especially when paired with professional management from day one.Happy to answer questions around:Structuring equity deploymentOut-of-state investing considerationsWhat to look for (and avoid) in Midwest rentalsHope this helps someone thinking through similar options.

I put together a one-page visual to help explain an approach some investors use:treating a HELOC (simple interest, daily balance) as a central operating account rather than parking cash in checking/savings.Conceptually:Rent flows into the adjoined checking account of a HELOCExpenses are paid from the same lineDaily balance math reduces interest automaticallySome pair this with targeted principal reduction on long-term 30 yr mortgagesFrom a lender’s seat, I’m not advocating this as an end all be all strategy — just trying to understand how investors are thinking about it operationally.For those who’ve used something similar:Where does this add real value?

While not as sleek or modern in its UI, it offers powerful accounting features, solid messaging automation, and integrations with major software platforms.Ultimately, if your priorities are strong guest communication paired with clean financial tracking, and you're planning to scale or manage properties for others, Guesty or Hostaway are likely your best options.

The key is pairing solid neighborhoods with realistic numbers, so your investment grows without unnecessary stress.

The project demonstrated the effectiveness of pairing disciplined renovation planning with steady execution.Lessons learned?

.• Most investors underestimate how quickly sales tax, DBPR, and local licensing issues come into play, especially with short-term or mixed-use rentals.Land trusts work well for title holding + privacy, but they don’t replace proper entity registration or compliance.

They’re coming back.That recognition pairs with another important factor: Kentucky is now #1 in the country for film tax credits, and credit where it’s due—Governor Andy Beshear has done a genuinely strong job positioning Kentucky this way.

Pair that data with a simple check of each city’s STR rules so you know upfront whether hosting is allowed and under what conditions.

In a market this competitive, it feels like creativity helps most when it’s paired with discipline on entry price and downside, not just complexity for its own sake.

@Todd KnudsonI recommend Baselane or RentRedi if you are self-managing LTRs and pairing it with QuickBooks Online for bookkeeping, since you plan to grow.