Landlord Debt Question - Key Concerns for Landlords?
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[{"id": "gixxyuf", "text": "I have around 20 properties and i have no idea what answer they're looking for lol.  I mean any of those could be right depending on the person.\n\nCould it be #4 though?  It's the only one that doesn't prioritize capital preservation.  I mean exit strategy should be important.  For example do you plan to hold for 10 years or 5?  Longer means that when interest rates change and your loan % rate changes, your cash flow and ROE will go down.  If you plan to hold only 3-4 years after renovating and raising rents, you might want a totally different loan than if you planned to hold 20 years \n\nI'm not sure why I'd be highly prioritizing capital preservation.  Three of the answers have that in them.  If capital preservation was a top 2 investment priority i don't think real estate is the correct investment.", "replies": [], "depth": 1}, {"id": "gixzj30", "text": "Crazed tenants that will destroy the property.", "replies": [], "depth": 1}, {"id": "giycum1", "text": "No idea but assume 1 or 4 due to cash flow, as cash flow is what repays loans. Maybe \"capital preservation\" as some kind of buffer in the event of a vacancy that creates a cash shortfall and you need to service debt out of liquidity?", "replies": [], "depth": 1}]