With that cash out it will put me at 67% ltv which is pretty well optimized in my book.

I want to ensure I have my financing optimized before making any commitments on opportunities.

With the sale date optimization, what are the metrics do you use?

Hiring a PM doesn't count, because again the PM works for others not just you, so they are not going to optimize the costs and rents of the investment in the same way a dedicated, full-time employee whose only responsibility is that complex would.  100 units is about where CAP rate becomes meaningful, at least in my market. 

I am under contract on a 41 unit, how would you suggest best optimizing a motel with that many units?

My cashflow can "handle" the 7% rate, it's just not optimal lol, especially since I currently have a 3.25% rate,but I think getting the cash out is worth it with the estimated "risk/reward."

Matt R.To balance the optimism, you need also account for the year-over-year increase in operating costs in your projections as well. ;-)When we analyse a property for purchase, we like our numbers to be very conservative, so we will model a property over a period of five years with no rent increase, no appreciation (sometimes even depreciation) and an annual increase of 1-2% in operating costs.  

I think your own backyard should be the most optimal place to shop for a deal, as we have been taught via the podcasts.

Watching your net worth grow is a critical and motivating aspect of your investment program.It's also valuable to continually re-comp (re-value) your properties, not only to compute an accurate net worth, but to optimize decision making in determining which properties to sell for gains, which to dump if trends are moving the wrong way, which to keep for best rental return and cash flow maximization, etc.You should compute your current returns (ROI, etc.) on a property using current market value, not historical cost, so that you recognize "opportunity cost" of continuing to hold an appreciated property, for instance.

I think any good business person knows that cash sitting in the bank is not earning them the optimal return.