We were like the titanic and once we went into neutral then reverse we did 3 months of loans and got stuck with them.

Your risk can be mitigated by having a neutral 3rd party inspection and appraisal done.

And Note what happened in 1990To clarify, I'm not suggesting that you buy cash flow negative or neutral properties.

We are neutral on Petersburg right now as lending market.

I am confident of on-going rent appreciation but am more neutral on continued market appreciation.Good luck

We wanted cash-flow neutral properties in a safe high appreciation market for the long-term and Boise was the best place to be.

Seller wants to provide everything caveat emptor “Purchaser beware”Purchaser wants as much assurances prior to closing, certain Seller reps and warranties will survive, but typically hard to enforce post-closingPossible solutions include escrow account for highly volatile circumstancesThe parties involved SellerSeller’s Agents i.e. managers, engineers, leasingPurchaserPurchaser’s Agents i.e. engineers, surveyors,Seller BrokerPurchaser’s BrokerSeller’s AttorneyPurchaser’s AttorneyTitle CompanyEscrow AgentLenderWho does whatSeller is responsible for approving the submitted documents from Purchaser in a reasonable timeframe, but typically not a contractual dutyPurchaser typically proposes LOI, PSA for initial term discussionBrokers are responsible for conveying information and negotiating their client’s position based on market comparablesAttorneys negotiate detailed terms within written agreementsIn some cases, can act as a party’s broker if a deal is unrepresented by a commercial brokerTitle company provides title insurance subject to listed exceptionsCan also act as escrow agent to hold Earnest Money and Purchase MoneyIn the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damagesLender will engage in some due diligence on the value of the assetMay require changes to loan terms based on documents discovered during escrow period

This would bring that property down to a neutral cash flow position but again allow expansion.

The property will be cash flow negative at purchase when allocating for all expenses when adding in PM, vacancy, cap ex/maintenance, misc costs.You have a real big range for ARV and no estimates on repair costs.As a buy n hold the negative cash flow will eat at the initial equity until rents appreciate enough to make the purchase cash neutral.

However, using that neutralizes the cash flow.