All of the major components can be and are outsourced or spec'ed out to 3rd party OEM's. 

If you don't know these terms, look them up, it's the best way to learn.Know too that financial ratios do not always apply to real estate because real estate is not a liquid market like stocks, you also have unexpected and unknown carrying costs that don't apply to say stocks or bonds.

But what I thought they said is to figure out the cash flow and then divide it by two because history has tended to show that unexpected expenses (new water heater in yr 1, roof repair yr 2, etc) tend to eat up about half of your earned cash flow.  

This way, our interest rate is a tad bit higher, but the properties will still cash flow well and we had enough money left over to have a good sized emergency fund in place, in case of any big unexpected expenses.

Dear BP Community:We are buyers on a property where the appraiser unexpectedly appraised the property to be in Below Average Condition.

@Waylon GatesThere are many reasons the Solo 401k is the preferred structure.Contributions limits are roughly 10x higher, there is no custodial requirement for the 401k, you can take participant loans, you don't need the additional expense and administration of an LLC to have checkbook control, there is a built in-Roth component, a spouse can participate, there are additional tax benefits, there is generally greater privacy, and the plans are often quicker to setup and cost less money over time especially compared to most IRA LLCs.

Its more predictable that "cash flow" which can be wiped out with one unexpected capital expenditure.

I do not have a particular plan as of yet but I believe by saving your money and timing is two important components to get into investing.  

Fortunately for me, because I had a bunch of unexpected problems with contractors that has eaten up thousands.

I think had I gone active component I may have done that but I took the reserve route.Thomas S.