Account Closed Kudos for being creative, but it is not an original idea and likely hasn't been widely adopted for a reason.That reason is that there is an optimal price you can get for your property--the top price that your property will gross.  

Thanks very much for the perspective and optimism @Peter Vander Valk! 

My reasons for buying here in the first place was that it was in the Go-Zone (post Hurricane Katrina) and that there was a lot of optimism in the area for growth (port expansion, refinery, tourism). 

If you've got a slamming deal and solid track record (f. ex my guys that did a bunch of Fannie loans for deals first), take it to Lima One to be rewarded with optimal terms and conditions that reflect the safety of the great deal you have and your track record of success. 

Amazing that this was written in 1937, a far more depressed time than now, yet what optimism and conviction of success.

This isn't optimal I guess, since he doesn't want to owe ANY money, but it doesn't seem so terribly bad.

And I focus my time on those tasks that will ultimately generate more than $200/hour, which for me is essentially finding deals, negotiating deals, networking and building/optimizing my business.

But once you have been identified and assessed the risks, all techniques to manage the risk fall into one or more of these four major categories: Avoidance (eliminate, withdraw from or not become involved)Reduction (optimize – mitigate)Sharing (transfer – outsource or insure)Retention (accept and budget)Ideal use of these strategies may not be possible.

As I get older and the recession drags on I find myself wanting to keep more cash though.This is a psychological thing and not necessarily what is optimal for my portfolio.For those with lines...do you have debt covenants on your lines?

Real estate is a local game in most respects.As Charles mentioned...If you lower your rents you will have fewer vacancies and if you raise them you will have more. 5% vacancy for larger buildings is generally an "optimal" target for most investors.