Hi @Mounir Semia - Could this credit union do a LOC in the second position?

They didn't give you clear positive signals about this potential tenant so I'd take the results back to the applicant, show them the answers, and let them know you can't in good faith move forward with their application process due to an incomplete reference.  

@Tracy Layton many investors in your position will go without the Property portion of the insurance, but keep General Liability (GL) coverage.GL is usually 10-20% of your total insurance cost, but could be the largest financial claim.

I would love to hear the pros and cons of this.If Catholic Services in paying the rent, I would think this is a positive.  

They told me nothing but the guy was a youngish doctor and he was having trouble getting a practice established but had been offered a teaching position at a medical school back east.

I'm assuming the multifamily will provide positive cash flow which would better than what you have going now.  

Sometimes itll be positive and also a dud!

I think you have to get to property number 3 or 4 until the snow ball impact of the cash flow and equity is really felt, but even with one single family home it is there. 

All of my rentals have been cash flow positive since we took ownership and my vacancy rates are sub 10%.

The amount of loan does not impact that amount of gain recognized.