Don't spend money on stupid stuff.

He is working on getting this number for me, but they only expect it to be around 60-70k, which I most likely will get a private lender to come up with that money.

There is definitely a stigma about electric heat.So, our current thinking, rather than spend the money on electric heating units, or individual Rinnai's for each unit, is to look at energy savings and heat loss. 

It depends on your loan.Your plan is to spend $50k to make $200-300k more a month?

Spending a couple of hundred dollars can reveal major issues.

At a high level, this is generally the path people take - we see a lot of people have success in this route - start building the portfolio with banks, low down payments, and then **generally** when you hit around 5 or so properties - it starts to make sense to switch over to LLCs, its too hard to qualify/deal with paperwork of banks and switch towards private lenders like DSCR Loans - (LLC friendly, easier) to scale past 5 or so.

But it's what my thoughts are and determines how we will operate and spend our money.

I have almost 100k saved and am more than willing to spend whatever I need to. 

You will get convinced you can do seller finance or sub to, but it's not practical unless you are going to spend all your time doing that.

I would start with all cash and then seek private lending money.