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.

Some will cost more than expected, some less.If you are worried your calculations are too conservative, add 25%, 50%, or double them.

I use debt but in a very conservative way.  

It seems unlikely that this will continue into perpetuity and let's say a more conservative estimate is 3% annually, which would equate to about $6K annually in appreciation. 

My guess is you had the money to put down if you needed too but you were trying to conserve cash.

So all in I am at $240,300 , hard money I am factoring in as 15% rate and since I’m borrowing 840k for let’s say 6 months , I’m factoring in hard money costs at 63k for 6 months So now all in I’m at $303,300 ARV should be at least $1.3 million (conservatively) I would cash out refi with a dscr loan and get back 975k , I would pay the $840k I owe to the hard money lenders , leaving me with 135k , and I would pay myself back with that money , and since I would have $303,300 invested , I would pay back 135k to myself leaving me with $168k invested in the house with a equity position of $325k , the actual house number are such after the cash out refinance: This house has 2 units and 3 accessory units Mortgage : $7100Heloc payment : $1300Total = $8400Live in 1st floor Rental income 2nd floor : $30003rd floor: $1500Accessory unit 1 :1200Accessory unit 2 $1200Income : $6900 Net : negative $1200I also already have a house that’s breaking even , but I’m living in one unit and if I move out that house would become positive $1500 which I can put toward the payment of one of the other houses .

Their underwriting has also become more conservative and cautious.