Forced appreciation allows me to build equity from the beginning of the investment, so if I need to firesale for an unforeseeable reason, I will not be underwater.

Most lenders sell their loans out.Nobody wants a loan where the asset is underwater every month.The real question is, why is a property worth over $1M only producing $4,000/mo.You should consider raising rents as this seems significantly below market.

Forced appreciation allows me to build equity from the beginning of the investment, so if I need to firesale for an unforeseeable reason, I will not be underwater.

Indeed, where we pay a REALTOR commission, we are initially under water, but look at the long- term probability the rental will remain in the system.

Ashcrack seems to be running the ARK innovation fund of CRE-Multifamily, with every property underwater and no hope for profit anytime soon, and with highest risk loans they could find on the planet to purchase with, I guess Tony Soprano wasn't lending then. 

But I’ve seen enough people wrestle their way through this to know that once you’re on the other side, it’s like taking a deep breath after holding it underwater for too long.- Dennis & Jasper

That's about what I'll get in the stock market plus I'll be liquid (as opposed to underwater the first couple of years) and it's just push button. 

If I buy a house for $400k, and the market drops and the house is now worth $300k, I am under water.

Jon Holdman@Jon Holdman, I am not trying to be vague, like I said I do not know much about this other then the note is underwater and that is why the bank won't finance the loan.

@Bijan SabbaghiYou don’t that’s the challenge - we pull data from several places as a note holder and for example and currently we see less than 20% actually going to foreclosure as most are ending in bankruptcy right now due to borrowers equityThe ones that are under water are typically going back to the bank.Best bet is to find properties where deceased or maybe divorced to get higher chance of actually going to foreclosure