Martin,That makes sense, considering principal paydown as part of your return, especially in tougher markets where you'll be sitting on the sidelines or doing a lot of rehab to come anywhere near the 2% rule of thumb.

You want to have some cash on the sidelines and you want some to be in other investment vehicles.

For one reason or another, unlike most, I felt a feeling of being content and went back to the sidelines.

Way to not just sit on the sidelines and observe.

I still feel like it's not a bad time to be on the sidelines though. 

If it is a matter of staying on the sidelines (LLC) vs. getting started right away (personal name), I am rolling my sleeves up and taking the risk.   

If the market started to fall I could sit on the sidelines for a while safe in the knowledge that I have taken my profits as cash and not watch them disappear in a puff of smoke.

-----------------------------InvestmentIf flipping homes is a sideline to your main source of income, the IRS regards it as an investment subject to capital gains tax rather than income tax.

And while it’s fine for your immune system to sit on the sideline for a single play, serious trouble can arise when it’s out for the whole game.

My concern in distinguishing between stagflation and inflation is that I am largely sitting on the sidelines right now because the deals I see aren't meeting my thresholds for returns.