Development

The combination of converting to condominium and retaining equity in the form of rental units can be effective to create short-term leverage and build long-term cash flow. Paying down the initial mortgage with the sold condo units, one can refinance the remaining condo units to take money out of the project for other property purchases. The rental income can be allocated to pay operating expenses and at least a portion of the expanded mortgage, the proceeds of which could be used as a catalyst to start the next project.