So if the LP's have enough cash they simply pay the loan off and own it free and clear.. but the size of the deals are so large raising cash to pay off debt simply is not realistic at all so if the property goes into default your junior position investors find themselves wiped out.Further more thats why a debt fund like Chris has can be a good choice for the very conservative investor..

The BP community of course naturally gravitates to fixed rate long-term debt on real assets as probably the safest way to use leverage to build wealth. 

@Eric L ConryThis is a highly personal choice.

I did it, because I had no choice, but I would not recommend it.The pictures below are all (young me) me, including the guy inside the septic system.

David,Yes, investing out of state can be a wise choice especially if you live in a State like CA, NY, NJ, CT where home prices are over priced and taxes are brutally high.

We are not the right choice for everyone, but we do help hundreds of investors every year start and progress their investing goals.

We are not the right choice for everyone, but we do help hundreds of investors every year start and progress their investing goals.

Sometimes a refi or HELOC can be an alternative if you want to hold onto the property.If I were in your shoes, I would start looking at a refi first and see if that would be the most beneficial choice. 

If you prefer a nicer home with future equity growth, White House might be the better choice.

It’s a smart choice if you want to streamline operations and ensure a consistent, high-quality guest experience without being hands-on 24/7.I'd be happy to share more ideas.