I realize principal preservation and debt levels are mutually exclusive goals to the seeking a 40% leveraged return there......but with your belief that Boise is growing....isn't the risk/reward in your favor to own more houses with an acceptable level of leverage, than to own fewer with mortgages paid off?

@Sanjeev Advani There can be a ton of reasons to buy low-cap properties:- HNW investor with a capital preservation mandate buying core/core+ assets- Value-add opportunity: The asset is not managed properly.

Sometimes, a homeowner is able to stop the foreclosure and preserve continued homeownership.

Your exit strategies are key in preserving your capital.

That's posted by the preservation co. doing the maintenance, so you don't call Them.  

Dependent on your risk tolerance, the general answer is to leverage highly given the low interest rates and preserve your cash to continue to invest and grow your portfolio.

If not, they can claim "fraud"...and good luck from there.This is a clear case of why you need asset protection and why you should do rehabbing under an LLC (or better, a Series-LLC) that you put in preservation after the sell.I'm not a lawyer, nor CPA, so take this with due diligence, but I hope it helps.

You may have to pay an extra point up front, but you can get the bank to finance 80% of your expected rehab and preserve your cash.  

I know that it used to be common to mix diesel with used oil or tranny fluid what ever was handy .It was used for termites carpenter ants any other wood munchers they drilled into the ground and also sprayed exterior of buildings and wood floors of trailers to help preserve the wood.

I'm not really a big risk taker, and at this time, preserve my capital is one of my top priority by playing it safe.