An overall D/E ratio or global cash flow that demonstrates margin for downside risk may be in order...right?

In Canada that person is still 'on the hook' for the remainder of the loan (eg 160K).Banking is 1000x easier compared to the U.S. and a typical closing is 2-3 weeks.However the downside is that nearly all mortgages are 1, 3, or 5 year terms with most people opting for 5 years.

However there is always the downside too.  

On the downside I have found with new tenant protections there is a bigger risk of your tenant doing serious damage to a nice place that cost more to fix back up.

Understand benefits and downsides to each.6. 

That's the downside, too.

Thank-you Jeff, I had forgotten about your blog post.I contemplated the downside of making a message mandatory.   

Downside, double taxation.

Net-net, it's a great way to solve some challenges you might be coming across (ex. not enough equity, can't get approved for loans, etc.) but as with all good things there are potential downsides (ex. if they go AWOL and you have to fire them then it would get messy). 

Deal SummaryProjectionsPurchase Price: $203,500Closing Costs In: $11,100Rehab/Holding: $70,913 (includes 10% contingency)ARV: $340,000Closing Costs Out: $11,642Profit: $55,290Time: 180 daysInvestor Cash-on-Cash ROI: 11.0% (23.5% annualized)ActualsPurchase Price: $203,500Closing Costs In: $8,382Rehab/Holding: $90,563 (oops)Sold Price: $353,900 (that helped)Closing Costs Out: $14,866Profit: $49,034Time: 165 daysInvestor Cash-on-Cash ROI: 10.0% (23.5% annualized)StructureUsing OPM, and given my limited track record, I wanted to structure an offering that limited investor downside risk and gave them confidence to take a bet on me.