Here’s how it works:Buy a cash-flowing property with solid fundamentals today.Rehab it, improving the property’s value and generating more rental income.Rent it out to ensure cash flow covers your costs.Wait for a Rate Drop—this is the new "R."

You will want to run projections on each individual property to ensure that it will produce enough revenue during peak season to cover your low season months.

If you have enough properties, you can ride a tenant issue with the other properties covering the cash flow/expenses of the bad tenant--especially if you have professional tenants who care about their credit score. 

As a new investor, a duplex gives me some pause because I'm afraid there might be long periods of vacancy where I'll have to come out of pocket to cover expenses.

You’ll want to ensure rents cover PITI by at least a ration of 1 to 1.

As far as closing costs go, see below:-Title fees-Title insurance-Hazard Insurance-Lender's closing fee, underwriting fee, or any other flat fee they charge-Origination fee-Attorney fee (if the property is in an attorney state)-Doc fee for closing docs-Prepaid interest through the end of the month you are closing-Recording and transfer fees on titleThat will cover most of your normal closing fees. 

I lived in the house with my siblings (who pay me enough rent to cover the mortgage) for 3 years, until 3 months ago when I moved to Phoenix.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

While insurance might cover the reconstruction of your property, the community's recovery could take years or, in some cases, never occur.

You’ve got the right idea when it comes to liability protection and separating the income for tax purposes, but there are a few things to consider with the "due on sale" clause.When it comes to paying the down payment, it’s perfectly fine to use your personal account to cover it since you’re personally guaranteeing the loan anyway.