Vacancy & Risk Management✅ Plan for at least 1-2 months of vacancy per year to avoid financial strain.✅ Understand eviction costs and legal processes in case of tenant issues.5.

If you want some very broad strokes that are asset class specific, but not location specific.Highest risk and return to lowest risk and return, offices is at the top.

Here’s a breakdown of my numbers:Primary Residence:Estimated Value: $340,000Remaining Mortgage: $187,000HELOC Balance: $76,000 (fully utilized)Remaining Equity: $77,000Rental Property #1:Estimated Value: $110,800Remaining Mortgage: $60,000Equity: $50,800Cash Flow: $375/monthRental Property #2:Estimated Value: $215,000Remaining Mortgage: $115,000Equity: $100,000Cash Flow: $350/monthOther Income:$1,500/monthMy DilemmaI'm considering taking out a Home Equity Loan (HEL) on my primary residence to:Pay off the HELOC (eliminating the variable rate risk).Use the remaining cash for a down payment on another rental property (~$150K purchase price with 20% down).Estimated cash flow: ~$150/month in year one.Alternatively, I could save up for the down payment instead of leveraging more debt.

Returns are a function of barrier to entry, effort and risk.

We shall see, I will update if I see a loss but again do not expect it.So my life has been consummed with putting together the 1st few concept drawings of my project.

You could put most of your funds in the stock market and access them when needed for a HML.

If and when someone, or a reliable company comes up with a deal to fully manage a single room rental property for me then I’ll look at the profitability, ROI, and risk and consider it.  

I know this is a personal liability/risk question, but I'd like to focus more on usual policies and prior cases if this would be sufficient to most?

The most successful farmers know how to hedge for bad years and those can be powerful tools to protect against downside risk if you know what you are doing.

Quote from @Stuart Udis: @James Wise "Do normal due diligence like appraisal and inspection and you're risk exposure is fairly low.