You lose:- benefits (such as medical) which are costly to get on your own- a source of recurring funds- some ability to get lines of credit of loans- ability to qualify for various loans at banks- a lot of your ability to get back in the job market several years later, if you change your mindIf you do, make sure you have a large cash cushion in the bank.

Sheena proper Due Diligence is needed for this to be a successful venture for you.

Have a similiar situstion with credit line at prime but remember when it was 8.5% not all that long ago.Credit lines are best used as a back-up source of funds and not for long-term.When your credit line expires apply for a new one.

There are proper ways to handle this based on size and extent of problem, whether mold is a deadly type, what your location is (for example, in NYC, I would be shaking in my boots.

Pay draws is the proper way to handle it so if your contractor does turn out to be bad, you cut them lose without losing all your cash.

Purchases are being made on pure speculation - not proper cashflow calcs.

I have called another 10 - 20 after that still looking for new sources or better deals... have a really sweet gig going with a local one, just closed on my 3rd property with them yesterday and the 4th should happen in about 2 weeks.

Materials would be sourced from vendors according to strict specifications.

Unless you are an experienced investor, don't buy Class D properties.Article Source: http://EzineArticles.com/1373544

:1) Based off experiences with the type of SFR to invest; I'm thinking of moving my wife and I into a nicer suburb (housing ranges from 120k+, rents in the $1.2k-1.8k range) - but won't make the jump until I find something around 100-120k so I can rent it out in the future if I chose to move.If I did this, I would rent out my current townhome (purchased for $75k & built in 2003, rents for about 950-1100 in very desirable location in Jacksonville)...Option 2 would be based on trying to leverage more cashflow to help feed future investments:2) stay in my townhome, and drop 25% on a SFR around the 70-80k range that would rent for around $800-1k a month, but the homes in these areas would be ones built in the 1970s concrete block style.I feel like former option would best my investments for building wealth as I do not currently depend on real estate cash flow as a source of income.On the other hand it feels like having a starter investment that yields more cashflow would help seed future investments.Thoughts are always welcomed!