Quote from @David Kanarek: DANGER !!!

I also think that if I can make all of my money back in 4 years with a cash out refinance, what is the danger?

You are entering a dangerous area. 

That is what often happens with many of these Co-GP's and gets dangerous when they are relying on their embellished track record to raise money from others.

I drive a Tesla… it’s a really fun car… but has so much acceleration you can get yourself in a dangerous situation if you don’t respect its capabilities… especially as a new driver.  

When you analyze a market properly (1% Rules aren't properly), you're analyzing all the properties in that market at the same time.It's even more dangerous for newbies to use any Rule of thumb.Rules of thumb are nothing but shortcuts, which seems to be the growing method of doing anything now. 

L&I has labeled both of them as “unsafe,” meaning the agency found them to be “dangerous to the life, health, property or safety of the public or the occupants of the structure.”

Now there is danger in that of course 1. you can miss something  2. when you go to resell if the title companies representing the bank or new buyer dont know you and they are not title company prepped deeds they may refuse to insure the next transaction as they may think the risk of title fraud is too great to take it on.  

However it was not my best work so thank you for giving me the opportunity to redo the video in excel this time and very clearly educate you and your investors on the dangers of economic vacancy and the many broad assumptions you, or more accurately the guy you hired to do your underwriting, made.

If you're curious - read it here: https://www.biggerpockets.com/forums/51/topics/1221700-rant-...In closing: The dangers of shifting the timing (of your income, expenses, and business transactions.)A purely mathematical exercise may indicate some beneficial timing for this or that.