Yes, the probability of taking a 10% haircut was very low, especially considering the buy low rehab model, BUT the probability of the 100% appreciation was even lower!! 

and you sell for more instead of taking the portfolio haircut. 

@Alexander Felice  Hope your haircut is not as great currently unless it is being cut at home. 

Don't ask the barber whether you need a haircut, necessarily, but there are no shortage of pros all over the country represented here who would be happy to walk you through "local Economics 101" for their metro of expertise.Many find it easiest to start where they live, but if you want to invest out of state: use census data to narrow down your top 3-5 potential markets and start finding people in those cities who understand what you're about.

So you would take a haircut on every dollar you stuff into a policy.

Think of east coast rich people on bad romcoms or made-for-tv Christmas movies that talk about "summering in the Hamptons" with sweaters wrapped around their necks wearing collared shirts with no buttons, sporting bad hair cuts. 

Warren Buffett says that you should never ask a barber if you need a haircut, and I noticed that most of the authors of those books had either esquire or J.D. after their names!

But that might force you into something.Anyone with money is going to want a pretty steep haircut for a portfolio so #1 might really dip into your profit. 

If not, take a haircut then move to something that will bring you money.

Many flippers are taking a haircut, especially now that market is seeing some increased inventory.