The lower the cap rate when you're buying, the higher the risk you're in negative cashflow territory when interest rates rise (assuming of course you use leverage) or you're in negative cashflow territory when you get higher than expected operating expenses (which almost always happens even with the best operator).Even experienced operators get into trouble when they run out of money - and that happens when they bite off more than they can chew, specially when the market changes.

Hey @Charlotte Chew I use cozy it’s great!

  - All great ideas for me to chew on for filling vacancy . thanks a bundle. - Regarding the CCI  Investment( Andy Tollone), here is the fee associated :"First off, you should have an Onsite Manager, and maybe the owner is doing that himself now.

No ones market is going to save them if prices turn nationwide and they over leveraged or bit off more than they can chew.

For example, after realtor fees, mortgage payments/holding costs, etc. by closing time, a chunk of my equity could easily be chewed up.

@Gregory Chew thanks!

I'm not trying to bite off more than I could chew. 

However, I don’t want to be stagnant for 3 1/2 years, but I also don’t want to bite off more than I can chew.

You can write anything you want , a bad lawyer  will chew that up and spit it our .

In the world of real estate if you're scared, timid or afraid to go get what you want you'll be gobbled up, chewed up and spit out before you even know what hit you.