If you’ve followed our podcast, blog, and social media for a while now you’ll know we always preach the #1 thing to vet for when investing as a passive investor is the operator, but, I don’t want to use this post to beat a horse that everybody else has already trampled on (myself included).I want to talk about another item that killed this deal, which was the debt, and how passive investors need to understand their deals debt.Debt is the most common killer of real estate deals.A Quick Recap:For a quick recap of this story a group is getting foreclosed on 3,200 units in Texas when the rate on their $230M loan went from 3.4 to 8%.That means they went from a monthly interest expense of $790k to $1.85M!

I feel I put the cart before the horse getting it repaired. 

You may be putting the cart before the horse in trying to decide ahead of time which financing strategy to use before you find a property.

Other things I put in houses are electronic dart boards, fire pits and horse shoes.

I've had the pleasure of spending time at her horse ranch in Ocala and her home in Orlando.She appeared at our local REI Group here in Springfield last June and I attended her 1-day flipping course which was well worth my time.

To make a play on the putting the cart before the horse metaphor, I was getting the cart and hoping that the horse would appear.Great advice, thank youKathryn

Learned about the financing from a HUGE bank that will go nameless whose initials are WF.....they like horses and stagecoaches.....anyway, financing doest seem that difficult.

I think thinking of the tax before the structure is a bit of putting the cart before the horse sort of deal.   

It currently is a horse propertyI looked up comps on the house, but it is a little bit difficult to figure out.

I don't want to beat a dead horse here but, yes, the rental market in Spring (and Houston in general) is arguably hotter than it's ever been.