Your best bet is to keep liquid cash and avoid PMI.

In addition lower rents will decrease the value of a property, not necessarily its appraised value, because no buyer will desire to pay retail for properties with reduced cash flow.

Are you living off cash flow alone?

The right idea is going to be the bread and butter.1) Ideal location2) Quality properties over quantity of properties3) 1.25x DSCR4) Intention to hold no less than 8, but ideally 12+ years.5) Sufficient cap reserves6) Mechanisms to enhance cash flow(via alt investing or house strategies).7) Liability protection through no PG loans(if possible), LLC formation, property management and being a diligent landlord.8) Invest deeper, before wider.Now if you're talking where to invest, different information.

But he stuck with me I had a 1 mil credit line that they kept in place so I could make money it was on 90 day extensions for 3 years :( but if they had not done that I would have had to give them the keys back on a few commercial buildings I ate 250k negative cash flow on those buildings to make sure the bank got all their money..

Most of us will go even higher...say 85%...but you have to get the property to cash flow at that level.

A buddy of mine once rushed into a deal that promised sky-high cash flow, but the sponsor’s experience was thinner than a shoestring in Times Square.

Also, I plan on purchasing this property with cash.

Do they have spare cash?

Could be a way to purchase a new property without much cash available.