Their good intentions cost them a lot of time, money, energy, and stress.

I had a retail deal and bank had an appraisal of $10,420,000, looking at P&L from 6 months earlier on the subject the NOI was $300k, looking at rent roll of a month in August the income was $105k with 35% vacancy, asked the asset manager how did the come up with $10,420,000 and he said based on that month rent whats renting in the market not considering this is a stressed property and wanting around 80% off that amount which did not even make sense what so ever.

We also have healthy IRA's and will both qualify for social security in the future.After being a landlord for nearly 25 years,  I'm thinking about selling it all and moving the money into immediate income annuites or some other fix income vehicle so we can travel and live a less stressful lifestyle.There doesn't seem to be an easy way to avoid capital gains and I realize many of these fixed income investments don't hedge against inflation. 

Even though some deals I made $10K, but I'd like to say it is totally not worth it, the stress(From HML and fear of losing money) and time I invested(few hundred hours in managing each project), $10K is really too little in a project, at least a Flip Project should make $50K, otherwise it is totally not worth it.

- Have you stress tested the deal to see how low vacancy could go to still pay your mortgage?

Hey @Melody T., looking at the sponsors track record and experience is critical.

The only challenge we ran into was the tenant needed an extra week to vacate the property, also this occurred during the 4th of July holiday so a little stress but the property had to be delivered vacant so we made sure that happened.

He doesn't have the liquidity and it's less regulation and checks and balances through crowd funding than with underwriters.Stay far away from this game; unless you like to lose money and increase your personal/family financial stress. 

New investors tend to stress out for years about their first deal or two, and then when it comes to the most important peice of the puzzle regarding how their property will perform and how passive their experience will be, they get lazy and don't develop a process for screening. 

Quote from @T.