I’d say investors that choose better locations and better properties within those locations will have a much better chance of success as the big risks will be minimized (by better properties I mean with less deferred maintenance, not necessarily newer but newer can sometimes reduce operating expenses, or older with “good bones” that are well maintained, especially if you’re needing to outsource any work and manage it remotely).

A fair way to compensate your financial partner typically depends on the agreement you structure.

To me this is very market dependent and product dependent.. in our Market some developments that are red hot that Lennar owns they might only offer 5k on a 600k sale.

@Jim Kozlowski Yes 2-3 days depending on timing on when the payment was made and if there’s a holiday.

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.

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.

However, home prices vary depending on location:Cincinnati: $319,310Columbus: $348,569Dayton: $261,583Ashland and Athens: Around $203,000Mansfield and Lancaster: Less than $200,000 Ohio's home prices are expected to continue to increase. 

@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.