In my work career, I work with my father and brother managing a portfolio of real estate. Recently we had to make a decision about the future of the property and management. We could continue as we have been with little to no debt and continue with the current rent prices. Or we could borrow money and invest that money back into the property to increase the rent prices.
B: Not encure any new debts or reducductions in cashflow
D: Abide by my bosses wishes to keep things as they are.
A: Continue to make more money both now and in the future.
Click on the icons on the arrows to see assumptions and injections
C: Expand our business to ensure a more profitable future
D': Charge a higher rent rate by improving the properties
In order to Continue to make more money both now and in the future. I must Not encure any new debts or reducductions in cashflow and in order to Not encure any new debts or reducductions in cashflow I must Abide by my bosses wishes to keep things as they are.. But, in order to Continue to make more money both now and in the future. I must also Expand our business to ensure a more profitable future and in order to Expand our business to ensure a more profitable future I must Charge a higher rent rate by improving the properties. I can't both Abide by my bosses wishes to keep things as they are. and Charge a higher rent rate by improving the properties.
| Relation | Assumption(s) | Injection(s) |
| D-D' | Borrow money to improve the properties to charge more rent would require his approval and he does not wish to take on any debt. | Use the money at hand to improve units one at a time instead of taking on new debt. |
| B-D | We have a successful established business that runs smoothly has very limited liabilities. | Not improving the properties could invite competition in the area by nicer property. |
| C-D' | doing so will increase our revenue in the long run | Charging a higher rate could make finding qualified tenants more difficult. |
| A-B | Doing so could jeopardize the day to day operational budget of the company. | If our properties are no longer desirable because they are out of date we would have increasing number of vacancies and that would lead to a reduction in rental revenue. |
| A-C | We need to continue to up keep our properties so they do not fall in disarray. | We can continue to use our cash flow to solve problems as the arise. |