The reason why prices are not “volatile” is because real estate is not marked-to-market every second of every day like public market securities.

The owners are transferring the previous security deposit over to the new tenants without even going over damages.

@Dillon McGough  Location,Security,exit strategy, Good Project management/Contractors is a must.

You need a loan not secured by collateral or something based on the new property. 

The first home secured the LOC, the second home secures the addition because once you pay cash it is free and clear. 

There is certainly more work to do when buying non-performing notes when compared to performers.

Of course, CAP rates don't hold much water when you are looking at under-performing facilities. 

Don’t touch the security deposit until she moves out.

. - Today, we bid on 6 NPNs (1st liens), waiting on copies of collateral to perform due diligence. - Consistently go see 2 off market properties/wk for acquisition. - Consistently set 2 renovation jobs/wk for the GC. - Revamp my 2 web sites.     

I did some googling but did not find this particular issue addressed.What interests me is both the properties being valued on the financial performance and the longer loan terms with a fixed rate.Thanks, Dan Dietz