The only negative is the risk of having to foreclose on the property and take it back if the note payments are not paid.  

@Nic A.Not to be negative, but 90% doesn't exist in my world.  

I'll even go one further and say that some of my most successful and profitable have been "0.75% deals" ... so to me the 2% rule is less than worthless as it will tend to get you into low quality properties in low quality neighborhoods where you have low quality tenants resulting in low quality, highly volatile, and very management intensive cash flow along with zero appreciaiton (actually, negative appreciation after factoring in inflation) in both prices and rents.

This means that you are now paying the mortgage for that period of time out of your own pocket and you are cash flow negative.  

A down vote means that a response could have negative votes and the user themselves could end up with a negative vote score. 

But I agree , it's a good point to negate the uncleanliness of the shared wall with neighbors to provide pest control 

Look for areas with increasing jobs and economies, especially for SFR investments.Back in 2008 I took a negative assessment due to the economy of the County. 

If your tenants are being killed it will have a short term negative impact until you find a new tenant.

Hi Friends and Colleagues,Looking for some advice on the following property:Physical and Market Characteristics: small farm house, unique in desirable area, long DOM for sale short DOM for rental due to schools.  ARV ...

@Anant: The one negative for the refinancing move would be I would probably have significantly higher interest rates with the 30 year I'd think (Quicken Loans quotes 4.125% for 30 year vs. 3.375% for the 15 year).