From a lender's perspective, the biggest determinant of risk is the LTV and skin in the game.Lenders have been burned by worst-case scenarios, i.e. if you default or the market turns. 

Hi all,Was hoping to get perspectives / hear stories on how others approached the possibility of selling RE assets and using the proceeds to paydown debt on other properties.Here is what I see as potential +’s and -‘s:+ increase cash flow by removing mortgages (so more passive income)+ opportunity to sell underperforming assets- less assets under management (so less potential equity appreciation)- taxable gains (will not redeploy into RE as my sense is we are near the top of the market)- 30 year fixed mortgages in place at low 4-handle rates (based on simple bond math, the value of my liability is shrinking on a relative basis as rates rise)Other facts relevant to my situation:* RE is but just one asset in my portfolio (and I’m fine with that); cash flow and appreciation are great, but I’m looking at the asset class as more of a long term hedge against inflation * not looking to leave my day job and / or replace W-2 income entirely with passive income * don’t need the cash flows from RE; again, I see the asset as a levered inflation-hedging play

However,  as noted  above this is not a business from my underwriter's perspective. 

Thanks for the feedback, I always enjoy different perspectives regarding risk

I look at all these folks that say hey there are no deals its tough I am going to sit on the sidelines until it crashs and jump back in.. well that's fine from a land lord or own a rental perspective.. but this year will be our best in new construction. 

Thank you again @Nathan Milholin I’ll look more into it from that perspective 

Less peace of mind due to increased debt, but trade off is better use of OPM.I will say we are leaning to taking out the line of credit for the pros mentioned above, but excited to hear your perspectives. 

I’m glad you’ve given me these perspectives.

Howdy @Samuel RuelkeStrictly from a numbers perspective the report looks good.  

I'm not sure I'm ready to tackle Clermont as a market to farm, but it would be great to trade some perspective since we're not too far apart in our RE journey.