Second, identify the type of tenant you'd like to rent to that will be commensurate to that life (ex. responsible graduate students). 

In short, in the context of real estate, the majority of your time has to be spent in real estate activities (usually full-time workers in other professions fail at this level of the test because convincing the IRS that you work two full-time jobs presents a problem) and the time spent must exceed 750 hours.  

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

Law students and lawyers have to pick it up along the way.

In hind sight it would have made a great rooming house for college students or otherwise!

My plan is to rent to students to try and get top dollar for rent.

Then our students were having a crazy hard time with the current leading website provider and I had to come in and fix a bunch of crap that was wrong with said internet hosting and template provider so much so that they stopped offering our students support due to "custom code" on our websites.So I said fine.

We converted the 2 San Diego units to student housing in off season/school year and STRs in the summer.  

We were able to do our first 100+ unit deal as LEAD sponsors (meaning we found, underwrote, and negotiated to close the deal) with Mark's help since he partners with students.

Home is worth $330kThe Second is a Townhome in a student housing development called The Timbers in Tallahassee.Cashflows ~ $1400 monthlyNo Mortgage on this.