Nor would paying people to moderate.

It's a challenging market but I say if you can pay less then you currently are renting then it's a win.

So depending on how much you pay for it, you can assess your cashflow.

Client rents that house and makes 1k monthly profit, plus has a really good paying job.

@Jordan Moorhead I know of many single-asset syndications as well as funds that pay distributions but have negative operational cash flow.

Equity pay down is ~$200/month for each $100k borrowed depending on rate you get.  

Second pro is that you get to lower your living expenses or live "rent free" by having your tenants pay for your mortgage payment.

The third property has a nice cash flow.I am wondering if there are steps I can take to reduce the cashflow issues of the 2 properties before obtaining another property, like pay down the mortgages or should I just save the cashflow from the third property to pay for any future expenses?

., your tenant stops paying, you're still in a relatively safe position.

Translation: you helped your client to protect their cheating against the state assessment.I understand that your client, as a result, avoided paying $45k.