This might be better if you’re uncertain about refinancing or want to keep more liquidity for other opportunities.Since you’ll move in 5 years, it really depends on how confident you are about refinancing.

But strictly going by the numbers, it's borderline OK, depending on the type of market.

Ultimately, it depends on your goals (low rates, fast turnaround, etc.).

It creates over-leverage and the performance of one property is dependent on the other.

@Ash Gowda - typically a 1.3-1.35 dscr.  5/7/10 (all dependent upon the lease term and re-ups); Rates fluctuate but for now from low to high 6's fixed.

Depends.

@Dorian Gray - I think part of the answer to your question depends on the likelihood of needing more funding in the future and if you have another plan to slowly build up reserve funding.

However, this also depends on their ability to prove your neighbor negligent, and the overall cost of the claim.

I think it really depends on if you are able to increase that cap rate with value-adds post acquisition.

You don't need to do section 8 to make positive cash flow, but I guess it depends how much positive you want.