It must make selling a house IMPOSSIBLE until its paid off since the same issue sounds like it would apply.

When a tenant moves out, transfer the deposit back to Checking so it's ready to apply towards expenses or refund the Tenant.If you end up with excess funds in the Checking account, I recommend you transfer it to a third account designated explicitly for future investments.

Haha, not sure about the veracity of some of those comments, but I tend to be skeptical by nature anyway.

It really doesn't apply as much anymore in most markets because rates are too high and homes are selling for too much. .75% rule is more viable and would be the new 1% rule in this market.

:)  its the nature of capitalism. 

In Jersey City rent control only applies to older building that are 5 units or more not new construction.

Natural fit.

They built out the infrastructure of the land in 2023 but never collected their applied for permits to actually build homes.

The IRS generally does not allow you to deduct expenses for a property that has not been placed into service, as deductions typically apply to operational properties actively being used to produce income.

That may not apply to you, as a financial professional, but I thought I would share the story.Obiously you could re-lever your portfolio to bring the ROE back up, but then you have to place those borrowed funds somewhere that nets a high enough return that the portfolio is ahead, given the drag of the interest and any transaction fees.