Learned what it’s like when you lose something you love in a bad economy.

@Caroline Landreth I would be cautious using all 200k on my first investment property as your risk of losing capital is higher as a new investor? 

He loses.

I could have offered less but didn't want to lose the deal.  

Some lose, because they don't do enough due diligence, and are just frankly dumb about it. 

Say you have a vacancy for two months, which means you are losing out on $900 per month for a total of $1800.

You would only have a 100 to 165 basis point spread between debt and cap rate for possible return before any rental increases and mortgage paydown.Hard to make that deal work as a syndicator unless the investors are taking almost nothing for yield.In Illinois you can lose your shirt on retail.

I feel like I lose the ability to cash out refinance it and am just becoming the bank to them.

Thats why due diligence is a big part of development and thats why development is higher risk....because you have a lot of soft costs up front that you could lose.

If you lose your tenant and have to remodel the home prior to renting it out again, you may have several months where you are stuck making the lot payment to the park.