Buy and hold can fall by the wayside if over-extending meets with unfavorable conditions.You have to eat.

In Kentucky, our attorney advised we not go over 10% of the total rent amount in late fees otherwise a judge may look unfavorable on trying to collect that much (they would possibly see it as excessive).

In my market of Columbus alone, rent rates have rose over 10 percent over the last year and missing out on that necessary spike with the increased price in property value would be unfavorable. 

This is helpful when your personal credit is unfavorable - it gives you a second chance to obtain funding, credit, etc. even if your personal finances are challenged.That said, of course, trade line issuers, lenders and credit card companies prefer to see companies in business at least two years.

If it is located in a part of the city that is overwhelmingly unfavorable then I suggest not wasting too much effort on this deal as there will more than likely be a deficit of cash buyers, but more importantly, there will be no one interested in purchasing properties in this area no matter what the spread.

In my case though I can't imagine a TK would give an unfavorable NOI and the low 4% cap rate was all I needed to know that either something else needs to be there (i.e. appreciation, rent growth etc.) or its probably not a great investment.  

If you have any interest in Politics, now would the time to get involved because the policies in Seattle are really unfavorable for landlords and investors.  

I worry PM has set unfavorable precedent for me. 

I remember one podcast where a guest mentions how interest on the financing is taxed unfavorably compared to the loan pay-down.

I do that by looking at the numbers something like this: Does the amount I can rent it for versus the amount of monthly expenses give me flexibility to lower rent and keep people in it if the market moves unfavorably, when I project cashflow how long will it take me to recoup the money I put in because once I make that money back I now have no money invested in the project but I will still have debt over my head.