You might need to save a little more to give yourself a cushion.

If your goal is stability and less volatility, an LTR could be more predictable, but it wouldn’t give you the cash flow cushion you’re looking for.Pros:More predictable income with less management effort than STR.Lower vacancy rates compared to STR.Less risk of fluctuating occupancy rates.Cons:Potential negative cash flow if maintenance and repairs exceed margins.Limited growth potential for income.3.

@Jerry ZhangYou cannotYou can give a personal guarantee but then you would have to have other assets.What could happen and we have seen many times is they go into default and the 20% equity cushion goes out the window due to late fees, accrued interest and legal costs.

If there is at least 20% of an equity cushion, I think you're safe using the methods described above to determine an appropriate sales price.

It is nothing urgent so we are not pressed but we could use it to have more cushion in savings.3.

If one tenant moves out or unexpected repairs pop up, the other property can help cushion the impact.Of course, more properties mean more responsibilities...double the maintenance and potential headaches.

Depending on the state you are investing in and the LTC to ARV ratio (you should ideally have this be less than 70% for cushion), you can finance up to 100% of purchase and renovation (that does not mean no closing costs but it can mean no downpayment).

I do believe that I am going to have to do some saving up as a form of cushion before I start this process.

Regarding risk my perspective is that it is much lower than typical common equity deals in that there is a 25% cushion re valuation drop before the pref equity holders would be impacted.

While rental properties typically offer lower ROI, they provide long-term stability and cash flow, which could act as a cushion if markets fluctuate or your job situation changes.Ultimately, it depends on your investment goals.