Terry Adams on BP Podcast #134 also talked about using this LOC strategy which just reinforced my thinking that this is a repeatable BRRRR strategy, great show highly recommend this one.  

This will clarify and reinforce what you are reading.

This will clarify and reinforce what you are reading.

But you did reinforce it pretty well with your comments.The new investors, those getting into things from the guru's messages OR any other reason who does not have adequate reserves (nor puts them away as he should using the 50% rule) will be the next "group" of people that will be falling into foreclosure because they are financed to the hilt and did not put away that which they needed because they are relying upon the appreciation similar to that which previously happened in the example given.

blurry pic but the back wall with the insulation is completely rotted out from an improper pan installation... yes it's load bearingIn progress from about a week ago, all new copper, new framing on the exterior wall... yes the wall with the plumbing is 24in on center, yes I've added extra blocking for the durarock... yes my new pan will be 4 inches above the old shower that they covered up with the leaky one, yes I know that I installed the durarock before the mud base, I'm doing a liquid liner (redgard) and mudding the crap out of all the joints and the durarock will be joined to the mud pan with screwed in reinforcement mesh...

This will help clarify and reinforce what you are reading.

Sounds like you're already prepared to simply pick up the pieces and move on just reinforcing that decision here...

Think of all the possibilities of your deal going bad, ask other people, and reinforce your plan.

Falling insulation made it look swampy like a rain forest. 1 joist (As seen in the picture) had been reinforced, otherwise, none of the others had been.

Thank you for the welcome and reinforcement.