Hey everyone - in an attempt to get a bit more exposure to the site, we've tried to promote our Property Analysis Tool using the popular site, Digg.com.

If you plan to keep the property for X years, clean up any threats or exposures now so you'll be ready if or when you want to borrow or sell.

I hope that changes and I want to buy an investment property.. however, I still have cold feet because the luxury of investing in REITs which are very professionally managed gives me exposure but it doesn't satisfy my passion.

All I'm saying is--although I'm personally not into acquiring properties with negative cash-flow--I'm aware of strategies where it can actually make good business sense to acquire properties with negative cash-flow.Additionally, the issues I raised about risk and speculation were simply to show that cash-flow has some exposure to risks and speculation just as appreciation and leverage do--albeit different amounts and/or types.

I've done 2 new construction projects thus far, and plan to do more in the future to have some exposure to market trends and to have nice capital injections every once in a while to pay down on my LOC's.

Most of my loans have started with a regional credit union and only 25% of them or so were sold so my exposure to the instance you are describing is only in regards to the insurance issue.

That leaves exposure for tortuous interference in a business relationship.

Also as each property is in its own LLC, my maximum exposure is only one property.

Don't forget to take away value for busy street exposure, nearby detractors (backs to a commercial building or parking lot), or anything else that may steer buyers away from the property unless priced below average comps.

True it's easier to buy outside the loop but I don't see cash flowing a couple hundred bucks a month with a $70k - 150k exposure as a great deal, especially with little appreciation.