Leverage and invest at 40x $100 000 properties ($20k down + $5k closing cost, 30 yeas fix rate loan) with a return of 10% where you have better asset protection (my keeping lower equity and higher bank position), you are hedge against inflation (agree with me, in 30 years $1 000 000 purchasing power will be less compare than $1 000 000 today) Here is how looks mathematically:1. 10% on $1 000 000 (10x $100 000) = $100 000 / annually - No interest tax deduction- No loan paydown benefit2. 10% on 1 000 000 (40x $100 000) = $400 000 / annually - debt service + full tax benefits+ loan pay down+ hedge against inflation for 30 years+ better asset protection (by maintaining lower equity  position)   + (not guaranteed of course) if appreciation happens, it happens on the all full asset amount, example:If appreciate 10%:In case "1" you will have 10% on $1 000 000 = $1 100 000In case "2" you will have 10% on all 40x properties (40x $100 000 = 4 000 000) = $1 400 000As far as cash flow, as long you buy "right" CAP 8% and higher you will have stronger cash flow on leveraged asset + all additional benefits.Great explanation.

I have zeroed in on a few markets (geographically and type of renter I want to cater to).

If it's not a gift, more documentation and explanation will be needed (are they also owners, is there a loan, etc). 

Do you have any geographic locations that you prefer to invest in? 

Alba v Jean-claude Kaufmann :: 2006 :: New York Appellate Division, Third Department Decisions :: New York Case Law :: New York Law :: US Law :: Justia This decision gives an excellent explanation of when specific performance might be denied.EMF Gen.

My area is somewhat geographically bounded by various different mountain ranges and the agencies from “East” or “Down South” might get 1-2 listings a year but will likely never gain much of a foothold due to their distant locations.

." - I don't owe you or a self proclaimed "*****" any explanation.

That's why the personal connection with the verbal deal and personal reputation on the line matters for me in classifying as a PML situation.That is a very clear explanation of the difference between HML and PML.

@Eric Winkler Thank you for your post and an explanation for some of what has been going on. 

However, if you demonstrate that you're abusing FHA loans, such as getting a new loan after six months because you converted the property you just bought into a rental without a reasonable explanation, then you could have issues.