If the project is large enough, liquidated damages (LDs) should be considered as well.

If you have a lot of equity and little cash flow, you may be better off liquidating that asset and reinvesting elsewhere. 

It really depends on your tolerance for risk and how much liquidity you want to maintain.Researching the Waterbury Market:Waterbury has shown solid potential for multi-family investments.

In my state the standard contract used by realtors addresses this issue by allowing the agent to check a box specifically to limit the seller to keeping the EMD as opposed to going after "liquidated damages" like that.

We have managed to build a solid liquid nest egg, but I'm hesitant to lock the majority of it up in a low LTV mortgage on a really expensive primary residence.

Your best bet is to keep liquid cash and avoid PMI.

We liquidated all of the houses, and I started over after the divorce was finalized. 

It's the same idea.FYI I've seen subto contracts which provide for ~$50,000 in liquidated damages against a seller that reports the sale to the lender and that results in the loan being called.

The last two provide the added benefit of providing you access to liquid cash. 

And in 18mnths that "partner" says they need to liquidate.