This is NOT an investment for the typical, conservative investor.

If you're more conservative, you might want to increase your fixed income allocation.Income needs: If you plan to live off your investments in retirement, ensure your portfolio generates sufficient income to cover your expenses.Remember, this is a general guideline.

I tend to be on the conservative end of estimations, as I'd rather plan for the worst so the deal can only be better.

I recommend going with conservative number as you're analyzing and see how that works out for your deal.

Calculate the mill rate plus 3% for conservative purposes.

Thanks, I’m planning on digging into my paperwork tonight.We’re thinking conservatively save 1/3 of the income as additional insurance against foreclosure.

It never hurts to be conservative on the first investment though, so congrats again on making the leap and the killer returns!

Thank you Mike - we've certainly been a bit conservative lately on the bridge front, which has served us well as a lot of competitors have stretched and gotten into trouble, planning on cautiously but smartly expanding and improving on the bridge front soon

Danko (Author)It’s people who live a fairly conservative lifestyle and while they own  mundane type businesses or work professional type jobs (or high paying blue collar jobs) put aside a good amount of income for investment.  

If you decide to go with it, understand that you're taking some risk.And, speaking of risk, the main risk is the IRS focusing on this strategy at some point and identifying it among "abusive tax strategies" as they did, for example, with notorious conservation easements.