its a bad risk for the companies to write. there are ways around it though. a property is defined as vacant when there is absolutely nothing there and no one is returning.. if you keep some things there.. table chairs old couch and return once every 60 days its unoccupied and will be covered under a standard ho3

This is a very vague question and can not be answered properly without knowing what area, what type of investment, what kind of risk factors, etc.For instance, a great cap rate for apartments in CA would be 6%, but would be terrible in Texas, Ohio, Illiniois, etc.

So what am I not understandingAt the risk of sounding like a wisea** I have to say that what you are not understanding is US taxes.We don't have a 40% bracket, although you're not the only one that thinks so!

When I told him, he said that I am falling out of Fannie Mae guide lines, and I am a high risk.

An upside to your fears about extra wear and tear, the whole subsidized housing program is such a great deal I would "think" tenants would be cautious not to ruin the place and risk the chance of getting banned from Section 8.I plan to get started in RE, buy, fix, rent.

By playing this game, I am taking the risk while I am rehabbing the new property, that no major expenses will come up with the old property that will put me in the red for that month.If you are talking about flipping a property, then sure you will live off part of that income while using the profit for another purchase.

There are risks that don’t occur with a retail purchase, mainly in access for determining the true condition of the property (and therefore setting your make ready budget).

Put another way, you'd be diving into a complex profession with no experience, massive risk exposure, and no support network.

Each person has to decide the risk/reward of how they want to structure their investments.

Risk/Reward needs to be appropriate.