However your plan (401k, Ira, Hsa, etc) can also be brought into a law suit with an asset such as house that has some liability but insurance should limit a lot of exposure.

(*** that)" has got to be the best thing I've seen all year bahahahahahahahahaahahahahaahahahasoiahfojsndflksdmfskdfmFor those of you not in the know, Oak Park is one of Sacramento's most contentious neighborhoods as of the past few years, and the extreme discount afforded in comparison to Midtown and East Sac and the ever-growing UC Davis Med Center have brought in a new, "hip" young crowd and driven up the demand like crazy.The price to buy a home Oak Park has risen 10 percent in the last year alone.

They Have More Equity In Their PropertiesMany of the mom and pop investors are more conservative with their investing approach and prefer playing it safer for consistent cash flow.

Would love to hear if you agree this approach, or would recommend another.

I think I'll go with the 3/1 approach.

My approach is to fast forward to a steady state on the new purchase (if there is any value add work) and then add the cash flow of the new property to the old one with the larger loan and if that is equal or greater to your current cash flow, you have a good target. 

Some have longer fixed periods and longer ams but they have rates approaching 7.

@Corban Clinkscale The best  approach reaching out to local credit union in that area.

I've kind of adopted the approach honestly to not bog myself in CPA type of considerations in terms of making decisions. 

Hello All, Monday night i went to a RE investing meeting and one of the speakers brought up something i had never heard of before, i know a little about HELOC's, just never used one before... but this idea he brought up just seemed way to good to work..