Some banks will accept higher DTI but not too much higher....and they will give you worse rates as you would be considered high risk.

Essentially, what do you want (min. thresholds), how much risk you are willing to take, budget, investment time frame, time commitment and liquidity constraints.

It's a risk, just like anything and you need to understand and be prepared to deal with it.

@Mike Flora  I was at J Martins last Oakland event.. and Bruce Norris did the keynote and I sat with Sean at dinner.Bruce likes SFR and half the Q and A for him was exactly that when is the crash coming and how deep will it be.his comments now were geared towards west coast but I do believe they are germane in many markets.He feels a market is not heading down until 20 to 30% or more of MLS is foreclosure acitivty or short sales and in our area that boat has sailed.. there is very little of either.He did mention though that he felt MF was  to use his words  " FROTHY"  his statement was when he talks to other MF owners and ask them would you buy your property for what you could sell it for today or a like kind one.. it was a resounding NO.. which to him or his point was he felt it was over valued and at some risk for moving backwards.. and from my VERY limited knowledge on MF I suspect that only happens in an over build situation to many doors not enough renters and you have rental bonus wars..

Do you feel that maybe you could have done more to ensure you mitigated your risk as much as possible?

The premise behind them all is the same, you have to be able to evaluate the risk and demand an appropriate return.

There are a lot of comments about using OPM (usually when someone who doesn't have access to their own money), and that by using OPM there is less risk to you.

I always warn my buyers of the risks, but overall, I don't often recommend those certificates are required for sale.

good outline ...possible  risks/ downsides to the idea of the cash out refinance : 1) rate/ terms  ?..

Older homes have more risk, in my opinion, because things may not be level, you many not be able to use standard/bulk items, specialty items cost more, you need to create a space that matches the house period, and the potential pool of buyers who desire older homes is smaller (at least in our area).