I use a spreadsheet with 5 different columns and some have higher than expected expenses/vacancy, or reduce the rents by 10-15% to make sure I can handle less than ideal scenarios while still making a healthy return.

` If you have a loan can you try and get the interest rate reduced or if you have paid on time sometimes the lender will put a payment on the back end to help you out.

Since property equity is not infinite, each interest granted results in equity being reduced.

Given the choice, I'll use electric water heaters to reduce the risk.Please PM me and I can share more info and advice.Rick

I think the DF act will look at all fish but once the large fish is hook and brought to the bank let's fry the large fish and enjoy the fruit of our labor and at that time, the little fish will get the message.

Haha @Jon Klaus ;) Or maybe the service is "reducing one's rental opportunities".

Physical labor.

If the proposed loan won't debt cover to the lender's satisfaction then more equity is required which will reduce the cash on cash return, all else being equal.

Last time I checked, they don't work pro bono on specific performance suits.The point of this part of my post is this; A new investor ponders the idea of taking down a property and writing a check, actually taking title, committing to doing the rehab and funding it as well as hiring labor to do the work, then putting the property on the market and leaving it vacant susceptible to squatters and vandals while it is waiting to be sold, dealing with an appraiser and/or a shaky buyer, waiting on all these pieces to come together just to get a pay check and it terrifies the crap out of him.

A larger debt is a form of asset protection as it reduces the amount of equity you have and reduces the amount of potential loss.The reasons for having an LLC include, taxation, and asset protection, sometimes those are conflicting goals.And of course there is a cost to each LLC, not only in state & organization fees, but also tax return prep and yearly fees.