I too am fond of the buy and hold and as the properties age I would liquidate and maintain a healthy RE portfolio.

That was pretty cool!

@Chris Rosenberg - motthavenbar.com/This place is pretty cool

The lender will let you keep your liquid assets and put a lean against it.Upen PatelMortgage BankerNational Lender, Federal NMLS# 1374243

very cool, congrats!

Once we have the property we'll need to decide what to do with it - liquidate (property is currently listed through June 2016, if property is transferred, is agreement with realtor still valid?)

My husband and I liquidate the contents of homes and businesses, and quite frequently, we run into situations where the property owners / executors need the property to be liquidated as well, but we refer them to a Realtor.

Never thought of myself ever achieving "a million dollars"  in liquid capital or even real property, but I was talking with my wife and she says that for a 5 years goal, in this day and age that is probably lowballing it considering I don't have a fulltime job to dance around time wise.Anyway- thanks again mega for your replies!

If it's a fix and flip SFR or Multi Family, then the DSCR won't ever work, so you'll be relying on the global cash flow of the investors to support the payment, in which case you have to have a good case for that via personal cash flow of the investors, liquidity and/or additional assets to pledge as an abundance of caution.To the question about the LLC's financials on a new entity, for real estate it's a non issue as the asset is what is generating the cash flow to pay back the loan not a new 'business' in the traditional sense.

In regards to your comment on quality of life in the rental, it is a pretty cool house walking distance to Ferndale, MI with lots of bars and a younger crowd.