I have always said you have to be pretty risk tolerant to get into a market like Memphis.

I understand it’s probably about my tolerance to risk, but what else should I be considering to help me come to a decision that’s right for us?

If rates rise too high, we just pay off the HELOC and let it sit until they improve, but we have ourselves positioned for high interest rate tolerance.

I guess the question you may have to ask is what’s your tolerance level.

But then again, you have to assess your risk tolerance.

That said, there are always certain borrowers that are more risk-tolerant or who are willing to accept the possibility of higher rates in exchange for the chance at lower rates.

It all depends of your risk tolerance and ability to finance new investments.

I have a rather low risk tolerance especially when it involves a small group of people or lending money to one person to manage it for you (unlike mutual funds with a lot of historical and real-time info and many stakeholders).

I have a zero tolerance policy for tobacco smoking but if I tried to evict every tenant that smokes weed here in CO I would have exactly zero tenants.

I also realize that I will not scale up like my buddy, so you have to figure out your goals, as well as your risk tolerance and your willingness to work your plan.