The bank will attempt to recover at least 75% of their loss on this property.

I have one of my business coleagues that has a similar portfolio to me - 20+ new sfr's leveraged to about 90% and he had a large financial loss on a non realestate business deal that used up all of his reserves.

Rent: $700Expenses: $350 (50% of gross rent)NOI: $350Loan Payment: $398Monthly loss: $48Jon

Therefore, your NOI in this case would be about $2,050 per month.Therefore, this is how I see this deal.Gross Rents: $4,100Operating Expenses: $2,050NOI: $2,050Mortgage (P & I only, 30 year, 7.5%, $450k): $3,150Monthly Cash Flow: $1,100 LOSS (OUCH!)

They minimize losses through management (self-management or an external management).

"Dirt-rich, cash-poor"This refers to the situation of having more land than cash to cover it and is a common outcome for an investor who accumulates a bunch of properties that have nothing in common but their owner.If you have multiple properties and are using the gains from some to cover losses in others and losing the battle, it's time to get off the treadmill, despite the temptation to hang on.Go through your portfolio in detail.

Holding property in South florida is not feasible.

There are a few states where you can end up showing a loss if you win the auction but an early pay-off comes in.People do make money with TLCs and tax deeds.

I think purchase price and feasibility are the most important factors.

Yes the $500 "loss" per month includes expenses as well.I understand that investing for equity growth is a form of speculation.