If you weight your analysis by:  1.

How much weight do you give to the cash flow benefit of cheap debt when the property is priced above market?

How much weight do you give to the cash flow benefit of cheap debt when the property is priced above market?

Yes of course its price can be more volatile and can go down faster than real estate would but long term it appreciates and pays every month.Curious on BP communities thoughts..

Generally speaking, if you borrow money at 7% interest and your investment is earning a 10% return, 10% - 7% = 3% and you are not growing faster than inflation.

There would potentially be some weight issues with the 2nd+ floors of some shopping malls, depending on what the potential tenant wants to store in the upstairs unit. 

For example, you could create a weighted structure where a percentage of profits is based on cash contributions, and another portion compensates for rehab or management efforts.Rent Payments and Tax-Free Profits:If you structure it as an owner-occupied property, the rent you pay could be shared proportionally, but tax-free gains on resale may only apply to your share, as you’d be the owner-occupant.

So you have to weight risk to reward.. and sometimes we have to eat one that we bought it happens..

Another one is when you start to feel a little weight off your shoulders because you don't depend entirely on your boss.

I enjoy college football, video games, and lifting weights.