Everyone will hopefully find their fine balance of: - liquidity and liquid reserves - asset/equity growth goals - debt management and cash flow management by strategically managing loan terms, notes payable, allocating, shifting, and replacing the more expensive debt instruments with less costly and better terms (fixed, no balloons, non interest rate sensitive) - tax planning - recoop losses from your financial bucket to be redirect to higher purposes or returns - estate tax planning - if you're over 5.34 mil and cannot siphon off your wealth quick enough through the 14k gift allowed annually per person- risk management - since each person has their own risk tolerance for each of the above categories To focus on just equity growth with out considering the other areas of planning may be very risky but thats just my opinion.

A mortgage in period 1 has less principal allocation in payment to a mortgage in period X (where x is greater than 1).

Hey Shaun,I recommend allocating more like the following:-15% property management (once you include all the extras, such as leasing fees, it will be more like 15 to 20% since your rent is so low).-15% for maintenance (this number is irrespective of rents and is more appropriately tied to the sq footage; 15% is a guess).-5% for capital improvements (capex).Those last 2 numbers are based on average expenses for Columbus multifamily properties that I've observed over a number of years.Don't forget there are other (small) expenses such as legal, etc.

That will break down all of the fees and allocation of the money.

.$67 per door.Debt Coverage - 1.481 or 2% Rule - 1.86%50% Rule - 61.35% (Allocation to repairs is heavily conservative.)ROI - 8.62%CAC - 13.99%Vacancy for the apartments are near 0%.  

We are allocation holders for D6, other fuels, grains, metals, and other commodities.Vetting is required of each new buyer.- J Johnson

It doesn't look like you allocated any funds to property management or a mortgage payment.  

I should add that if it were me, I would have funds in the account beyond the cost of the note which are allocated to pay for the expenses incurred working it. 

Daniel, need to check with your fund administrator with respect to related transactions if you are partnering on deals.Next, yes, expenses should be allocated to the property specifically as that reflects changes in your basis and income from that activity. 

But, fall back a bit and talk with your bankers and tell them the exact situation and see if those funds can be allocated for that transaction - which is wishful thinking but worth the ask - but also search for and line up another deal where those funds can be applied.