There are a lot of other variables here though...

You can’t run an efficient business if your most common cost is variable and outside of your full control.

So, this metric posits that your cash is more valuable than the borrowed money you put into a project (since you can't spend that cash on anything else), and that you should measure the return you get on it.And not ALL the potential or variable or eventual return from an investment, JUST the straight cash return you get on it.

Hello Everyone!I've seen previous posts that are a few years old when searching and just wanted to clarify what I should be plugging into these percentages. I've seen David Greene plug 5/5/5/8...but that seems pretty ...

Be sure to read all the details about the loan terms; rate type - is it fixed, floating, or variable; conditions of the note - what are you allowed and not allowed to do with the property; etc...

The variability in rents and the limited buyers on an exit make it a less attractive investment opportunity in my opinion.  

A balanced mix of continued learning and doing is, like anything in life, the best recipe.My two cents would be: It depends on quite a few variables, some being your character, mindset, goals and where you are at on your journey.Ultimately our goals are passive residual income, not active residual income.

I work in SBA underwritingyou may be able to refi out of your loan, though it depends on lots of variables obviously.

There are many variables, differences in investment strategies etc. 

There are too many variables (as you know) that will cause massive losses.