For some reason so many of the posters arguing for cash flow in SoCal post nothing but emotions or defensive arguments but never actually offer numbers or any other foundation to what they are claiming.

As far as insurance goes though, I would argue it is getting out of control everywhere.

One could argue risk...but then again, commercial syndicators have been doing this for the last 5 years.

Brett, I would argue that leveraging 100% of a property is not risky as long as you can control your variables.

For example, you directly own 40% of business ABC, and you also own 50% of an investment partnership that owns the other 60% of ABC. 

Just because ABC Realty has done well for me doesn't mean they are a good company.

Seller's initial is not absolutely necessary, but it is good to have so everyone is on the same page.Technically, Buyer's initial is not necessary either -- Buyer is signing the modified contract -- I just prefer to add it so it stands out as a change and Seller cannot argue that we "hid it"

If I were charging an adult child living in my home a nominal rent to cover the increase in costs due to the child's occupancy, then I would argue that I am not a landlord operating for a gain or profit.

You then establish a criteria for reasons to wave and have it set such that no other tenant may argue discrimination in the future when their fee is not waved.

When the HELOC gets closed and you try to argue or get another one those net numbers will bite.