I got started by saving my pennies for a down payment on a house. 20% down on a cheap house in Santa Barbara is a huge chunk of money which took me many years to accumulate.

I've looked over the balance sheets of my grandad's properties and the accumulated depreciation lines are extremely attractive to me.

I had assumed property management (PM) companies were overpriced and a poor choice for an investor without lots of cash-flow already accumulated from multiple properties.

If we accumulate enough excess cash, that can always go to pay down the principal early, or it can be reinvested in another property.However, a 15 year loan does have a big advantage or two, IF you have enough reserves to stay solvent without positive cash flow to fuel your reserves.

We charged her for the extra days she was actually IN the house, and worked with her because she had (not surprisingly) accumulated a LOT of stuff, but it took forever for her to get her things out of the garage, and for her to get rid of all the trash.

Nevertheless, I'm being conservative with my planned expenses.Budgeting 8% vacancy, 8% maint, 10% capital replacement costs (roof's in good shape but about 15 years old, hvac systems are pretty old as well), and while the 4-plexes will pay for themselves and accumulate equity, the low cash flow has me concerned.

Thanks for the input everyone - in terms of long term planning, i'd like to accumulate a few rental properties.  

Spending more than you have coming in means you accumulate debt.  

Over the years, I've accumulated experience, some expertise and resources. 

anywho so hoping over a course of 5yr of Property Management and tenants building equity for my property that i could accumulate around 200-250 in equity.