In this post, I will explain the criteria and the information sources.Income requirements for financial independence:Rents increase faster than inflation: Inflation erodes the value of money over time, causing prices for goods and services to rise.

Mistakes I see people make is they plan on living there a short time and over renovate the property where they will never get the money they put into it back. 

Why would someone buy now and make little money for the chance that the rates will adjust later?

But I didn’t need to worry–they had a lot of money!

Good morning Carl, @David Krulac is right on the money. 

If they don't, then you file a claim and hope the insurance company squeezes the money from the tenant.Get rid of this tenant.

It would be a tight budget but I do have money set aside for repairs.

Tell them you are losing money and can't afford to let it continue.

Just outline expectations and roles, and what each of you guys are going to do, and how properties will be acquired and how they will be disposed of, and how and when money will be taken out of the company and you should be good.

We are all about saving money on flips and renovation efforts.