You could say they are FDIC insured to an extent but claims to be made whole on a failed bank to get reimbursed by the FEDS can take a very long time in some cases.The NNN even if return was 5% you have hopefully property appreciation value long term, tax depreciation against the asset, rental increases, etc. you do not get with the bank.So my clients unless they are buying say a 6 million and up single tenant where I can land 7 plus cap rate above the debt a little those smaller deals sub 4 million do not work unless they are paying all cash or have a tiny loan like 25% LTV so the high interest rate does not affect cash flow that much.So what if someone HAS TO buy with 1031 for large taxes. 

Despite considerable deliberation, the HOA decided against pursuing legal action due to its high cost.

Our home mortgage is at 2.5%, so it would instantly cash flow if we rented it.

We have 250k in equity in the home after realtor costs, is it crazy for us to sell, take the equity and move to a better cash flow market like Atlanta or Fayetteville, NC and start our rental acquisition?

Current cash flow is $557/MO - Cap Rate 6.9% and COC 18%.Does this sound like a great opportunity?

@Bryan ChristopherThere are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

I just don't need the cash flow. 

I think its going to just take some time for the end buyers in the chain (the people responsible for buying the MBS through the whole process - generally banks, insurance cos, pension funds) - by nature are very conservative and slow to adopt to new things like SRO.Its a tough situation because the message a lot of times ends up being "rent it out traditionally on a single lease since thats more conservative" yet they are out of touch with investors who can only cash flow in this current environment with creative solutions such as rent by room, etc.

The cash flow looks great for that amount of money.

(Say 4 x $250k properties for every million, bringing in $1,250/mo in cash flow each.)