Forced appreciation allows me to build equity from the beginning of the investment, so if I need to firesale for an unforeseeable reason, I will not be underwater.

Most lenders sell their loans out.Nobody wants a loan where the asset is underwater every month.The real question is, why is a property worth over $1M only producing $4,000/mo.You should consider raising rents as this seems significantly below market.

Indeed, where we pay a REALTOR commission, we are initially under water, but look at the long- term probability the rental will remain in the system.

Ashcrack seems to be running the ARK innovation fund of CRE-Multifamily, with every property underwater and no hope for profit anytime soon, and with highest risk loans they could find on the planet to purchase with, I guess Tony Soprano wasn't lending then. 

But I’ve seen enough people wrestle their way through this to know that once you’re on the other side, it’s like taking a deep breath after holding it underwater for too long.- Dennis & Jasper

That's about what I'll get in the stock market plus I'll be liquid (as opposed to underwater the first couple of years) and it's just push button. 

Forced appreciation allows me to build equity from the beginning of the investment, so if I need to firesale for an unforeseeable reason, I will not be underwater. 

If I want to borrow money to increase my returns either a mortgage for the house or a margin loan for stocks, I can borrow money at 6.5% at 5x leverage (20% down) on the home taking my returns from 8-10% to 14%-20%.To borrow money for MSFT, I can only borrow at 2x leverage (50% down) but I pay prime+2% (or 10%), so my expected returns go from 15-20% to 20-25%.However, the loan for microsoft is a margin loan, so if we go into a recession and I end up underwater, the bank will force me to sell my google shares to pay off their loan. 

If I buy a house for $400k, and the market drops and the house is now worth $300k, I am under water.

Jon Holdman@Jon Holdman, I am not trying to be vague, like I said I do not know much about this other then the note is underwater and that is why the bank won't finance the loan.