However, if you sell the property:3 - $40k equity/frozen cash is now defrosted and = $40k cash/liquid (loan payoff from mortgage pmts covers closing costs)4 - 20% DP = $40k; New PV = $200k (back to a 5 to 1 ratio); New CF = about $8k +/- (assuming you bought 2 of the same properties like the original property when first purchased).Losses by not selling:5 - $80k in PV; $4k/yr in CFContinue to repeat this process, and you will grow faster, exponentially...without having to access more cash from others.

Imagine a TK operator there who runs 100 properties, all with frozen pipes and no electricity.

Is there anybody building there or has the market frozen up?

Both don't tap into the entire equity and leave too much of the equity still frozen in the deal.Besides, I'm not in love with any property, and neither is my cash...only the money that comes out of it.. 

I'm assuming the water damage came after the electricity was shot off (frozen pipe), but I will need to check I guess.  

Unfortunately the end result is people being frozen out of the market.  

I'm currently a single family home investor with a steady day job selling frozen food to Walmart here in NWA (Northwest Arkansas).

As their first rehab, a couple in my investing group bought a foreclosure house where the roof had been leaking for about three years and the plumbing had frozen and burst.

Here are some things that have come up in my rehab that were unforeseen in the many walk throughs with our 203k consultant, 5 GC's and me:Plumbing system had been frozen EVEN THOUGH the property was winterized.

I received a late payment from a tenant on the 14th with late payment and started telling me about how his wife's identity was stolen and their accounts were frozen.