Very strange approach based on us supposedly being intelligent investors.I would never replace a 4% mortgage with cash valued at 10%.

Besides, the Pergamon Museum, the Federal Intelligence Service (BND), have also been massively mismanaged in their developments.Is Berlin Real Estate a Bubble?

[If so, that still smacks of fraudulently/artificially setting the market value!] 

If I had not projected cap expenses into my cash flow analysis I would have shown artificially high cash flow until the expense, then one very bad month, and then positive cash flow. 

What people do not understand is that it artificially shields existing tenants at the expense of future tenants. 

I did not live in the property for 24 months but was wondering though if I used the Service, intelligence, and Peace Corps Personnel(Publication 523) to suspend the 5 year test period and disregard the 5 plus years it was rented out.

(If you assume 24 mth average tenancy, and an average turn cost $800--contracted out, turn maintenance would be $400/unit/year).So if units rents for $12,000/yr, then you'd have: $360 repairs (at 3% of rents), $350 reserves, and $400 turn, totaling just north of 9% of GPR.I don't any intelligent investor is going to assume anything less, not to say there aren't some unintelligent investors out there.

We have artificial support at present with 80 billion per month being created with no foundation and interest rates being kept artificially low, imo.Jeffrey- You must be dealing in newer "A" properties.

As others have mentioned above there are other options and the whole project needs to be evaluated along with your PFS and the overall collateral to speak intelligently about your specific scenario.  

This is not a commentary on anyone's intelligence, but on experienceSecond - stumbling blocks and stepping stones look a lot alike...the problem is that most people learn which is which by stepping on one.