I want to rent to an elderly couple, who meet all my qualification criteria but had to file for chapter 7 bankruptcy because he had a stroke and couldn't afford the medical bills.

One stroke of the government pen that closes a base and your investment goes to zero overnight.

But this a little of a digression...If you only had the 3/1 rented, could you still easily afford to make the stroke on this deal?

Dave just teaches people not to pull back the hammer.Different strokes for different folks, though.

Different strokes for different folks.

The first couple of paragraphs of this article cover the broad strokes before offering more detail.http://www.riverfronttimes.com/newsblog/2015/09/28/st-louis-county-could-force-eviction-of-tenants-with-misdemeanors-under-new-plan"Mark your calendars, landlords and tenants of unincorporated St.

That was a really tough time to get a loan and they believed in me.Local banks and credit unions also know the area so they can adjust a bit from a larger macro brush used by bigger banks.Positives of local banks:- you develop a relationship so you can someone you know and talk through a deal before you even offer on it- less broad strokes on requirements- longer fixed terms 10 year fixed is not uncommon (think hedging future interest rate increase)- most have no prepay penalties (this is huge and give you many options) If you cash out refi after a BRRRR and then 1 to 2 years later a buyer shows up a your door with some unbelievable price, you can sell without prepay penalty calculations.

It's an ego-stroke.

I think we mostly agree in broad strokes Shiloh about upper and middle class habits.

The day I see a cap rate over 7% I may have a stroke haha.