I’ve seen this happen here before and I don’t want to be tied to a home like that for the next 10+ years and watch my equity dwindle if the market corrects substantially.

That ties up your money for a long time.

Opps, been in the same shoes as you, been there bought that shirt.One thing I learned from a plumber is to always tape the primer and glue together and then they don't tip over.

That money will be tied up in the investment and should be included in your calculations for a realistic COCROI.

@Sharon Miller it’s not amazing and having 200k “tied up” you could do better.

Or do they expect to pull out only the acquisition and hard costs leaving some money tied up in the property?

That is when I anticipate purchasing my own home, as well as parking some of my saved money into RE, where it could be put to work for me, as opposed to sitting in a bank account.What would you do in my shoes?

hundred plus thousand already spent to get it to the state it was in .. so to me that was value and this particular individual is very tied into the development community in our area..

Put in a media room, an outdoor shooting range, a jacuzzi, firepit, horse shoe pit, have wifi and smart tv's, gas and charcoal grills, kegorator, boxing ring, free weights; and you'll have something similar to one of my larger houses.

It still allows you to continue purchasing properties, but you will not be able to continue the process indefinitely because at some point, all of your cash will be tied up in your properties.