If you have a strong historical capital and rent appreciation rate it might make sense to get into this market and wait for natural rent increases and appreciation to take hold and make for better investments if you wanted to stay local.You could also consider looking for turn-key investments in another city (Indy, Memphis, etc) where the returns could be much better - but the risk without having the ability to drive by the properties could be greater.

But consider the faith your other tenant may be losing in your ability to keep your home a tranquil place.

Borrowers are more accountable.In some entities, a member or stockholder may have an equity position attached to assets, rights to employee contributions, pay, benefits or internal arrangements that may limit the ability to liquidate assets or attach accounts, such arrangements are generally provided among those having a major or significant interest.

if you have great credit, solid assets and great income, sure,,, it would be based purely on your financial situation and wouldn't be secured by any properties.Banks prefer to have something to secure a loan with, so an open line of credit will be limited by your credit and ability to pay.

I've been focusing primarily on Cypress, along with Tomball and Katy (I have seen rapid growth in these areas and they seem to be in high demand).

Part of my traditional sales pitch is the ability to close quickly and I am able to do that with HML and not so sure I could do that with the banks.Definitely would be worthwhile to start asking around - I have been considering a line of credit to help with rehab costs, but until that gets built up it won't be enough to buy houses.

Management skills and abilities, if you operate a tight ship you won't be negligent and you'll never get hammered for a broken step or hand rail.2.

I think buying a multifamily and getting my feet wet will help me feel more confident in my decision making abilities.

With Power of Sale, the lender has the ability to force the sale of the property, but ownership does not change hands until the sale is complete.

If you have a tenant with good credit ready to build, and you have the ability and connections to hold the paper or sell it (among other things), then that's a special case.To answer your question about when it makes sense to build new with regard to multifamily, I would begin by asking myself the following question: Is anyone else building anything like this right now in this neighborhood that is proving my pro forma.