With this, as a lender we can exclude any payments for the current home to help increase your borrowing power for a new home. 

Banks do this because they know that with this difference a borrower probably will not get in trouble and default on the loan.This brings us back to small apartments.

  $225k profit per property...and your idle cash earns/saves high cost of borrowing (as you mentioned) and de-risks development. 

(We individual investors or Long term Lenders can't borrow at that rate) Mortgage rates typically follow the 10 yr Treasury yield. 

Howdy,I would use borrowed money vs. cash, for a couple of reasons. 1. 

If someone truly believe that the 17% is real and they could borrow money at a smaller interest rate, using the fungible nature of money, the person would take a loan to get into that deal, but a feel most people would not risk there primary residence on a deal like that. 

For borrowers, while it adds personal liability, recourse loans often come with more favorable terms like lower interest rates and higher LTVs.Non-recourse loans shift the risk to the lender, which is why they usually come with higher interest rates and stricter requirements.

So seems to be a lot of confusion out there of what the recent fed's 50bps means for the economy and borrowing money for investing. 

@John MasonI think it's less about the capital, than about your experience, your network, and your planThat is certainly more than a lot of folks have if it is truly cash and not borrowed / strings attached

Borrowing with no income is ripe for that sort of result.