In the middle of all this, I somehow struck up a conversation with a co-worker who began to describe to me how he had accumulated 10 single family properties in the Las Vegas area within the last 3 years.

Im slightly confused on what the fastest way to accumulate >$500,000 a year in passive income would be.

He suggested that maybe we coyuld figure out a deal where I pay off the debt he accumulated in back mortgage payments, prob 20k or so for a 50% stake in the property.

When a tenant is past due on paying their utilities, their bills add up, and so they automatically think that a $500 bill is for one month instead of being an accumulation of outstanding bills they owe the utility companies. 

One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons – and what I do, stock and real estate speculation.

Whatever you did to accumulate that cash, I would keep on doing that as well.If you are eligible for a VA loan, you can get your DTI up there in the mid 50's if you have enough "residual" income.

I accumulate funds until I have a nice reserve.

If so, then go ahead and start accumulating cash and investing.

Most people who are knowledgeable in REI wish they had started to accumulate rentals earlier.

If you have galvanized this is going to be just the beginning of your 'plumbing' traumas.You will become very experienced in pex if & when you are forced to change it all out.A fellow investor had a diverter valve issue & the plumber quoted the PM $450 to switch it out.But there was an easy access & we found the valve stem seat inside the aging diverter was broken because of an accumulation of rust etc from the aging galv pipes. $100 & it was all replaced.