This turned into a $3,000 charge that would take me about 2.5 months of cash flow to recover from (this is also why it’s important to have a healthy cash reserve to operate from and deal with unexpected issues!

All it takes is one bad tenant (or other unexpected major issue) and you will be in more trouble than you are now. 

Commercial General Liability and Workmen’s comp Insurances had a fixed and variable component to their premiums.

They stopped installing these wiring components somewhere in 1940’s or so.  

So even though I’m looking for a more cash flow friendly market, I am keeping a keen eye on the appreciation component.

The bigger question on everyones lips is what happens next, many people are focused on what happens next with inventory and pricing and I think thats a major component, but my bigger focus is lending and the job market as those two indicators will give us a better idea of whats to come.

I think we all need to do our best to stay informed so those that need it can get financial helpalso, remember that as in all unexpected financial shocks, there will be winners and losers.  

This resulted in additional challenges to landlords from unexpected places.

I am also about to close on a medium sized property and am just enjoying the unexpected lower interest rates.  

For those that are not familiar with lending, a major component to the crisis a decade ago was banks had to liquidate assets because they did not have sufficient reserves.