@Anthony Sigala my view is the markets that it is easiest to find a 1% ratio are unlikely to be markets where you will achieve good cash flow over a long hold.  

This way on a $300,000 purchase you only need $10,500-,15,000 for your down payment which if you maintain a low cost of living is very achievable every 12-15 months.

Good luck to you and I hope you achieve all your goals in lif I actually understand perfectly.  

Because I did everything wrong, started with basically nothing and STILL achieved financial freedom, I know for a fact that anyone can do what I did. 

I created the following decision tree diagram to illustrate the decision process (click to enlarge).The above decision process is based on the property’s performance record, with the goal of achieving financial freedom in mind.Financial freedom is not just replacing your current income.

Balance that versus lending the money out at 10 percent.

Hello Kyle,When screening applications for the properties that I manage, I always look for:- Income of at least 3 times the monthly rent (verified through the employer)- Credit score of 580+- Rental verification with past landlords (no outstanding balances, no late payments, and the property left in acceptable condition)- No history of collections, evictions, or criminal offenses- No overdue debt (except medical debt)I have found this screening standard very helpful when finding tenants who pay on time and treat the property well!

The balance on their mortgage is $190k. 

Your risk vs. reward is way off balance there. 

I think having a balanced budget would be ideal where you allocate money into buying another property and money set aside for renovations.