Paying down a rental and leaving equity sitting dead is a extremely conservative investment strategy and actually reduces cash flow on a property rather than increasing it due to the high value of cash.

I did just get a 1 mil dollar facility in Charleston at 1 and 5.5 for new construction but that was after being there 3 years and about 30 homes in the books. that they could go see and I could prove we made money on each of them. our terms are a little more conservative than yours..

I know there are several articles on BP discussing the advantages of leverage and I’ve considered them when thinking about this decision however I’m a fairly conservative investor always looking for ways to mitigate risk.

You do have one advantage of being able to conserve capital with a VA loan for your primary residence.  

Also, you can make a stronger offer if you are using cash.In my area, and given the units that I have been considering, this would result in about $100/m additional cash flow after debt service, and assuming 8% vacancy, conservative estimates for taxes and maintenance.

I am getting COC's of 15-18% which is freaking me out a bit as I assume that is way too high, but at the same time, I am sitting here checking the numbers and trying to be conservative and still coming out with solid COC #'s.I feel like it is my first time driving and I just don't trust my side mirrors and rear view mirror at all.  

ARV is 285k conservatively but I think after reno this can go to 310-315K, mostly inside work needed and just cosmetics outside so I would say 40k conservatively.

I go with the lower number to stay conservative.  

Local broker estimated rents for home would be 650-700 but I want to be conservative.

If it is off-market, I come across owners that don't want to give out financials or a rent roll, but groups will still write on properties but be conservative on their underwriting.