That's how I got started, downsized my lifestyle, found a way to live with very little overhead, was able to pay off all my debt and saved up enough cash to get started in real estate. 

Then we calculated the income needed for that lifestyle.

Your ability to "reload" for the next investment will largely be dictate by W2 and lifestyle.  

First, see Sch-C vs Sch-E.Second, the appraisal is not performed based upon EITHER schedule.However, the GSI-Expense = projected NOI, times 0.37 is actual NOI and that has to cover the mortgage+interest, insurance and taxes.The high vacancy rate (1.00 - 0.37 = 0.63) is a killer and usually, you would take such a loss ONLY because you would be year long resident AND love the life style - - aka it's typically a bad 'investment' and you're making this choice for OTHER than financial gain.

However, I do my primary communication with tenants on facebook and they all love the fact that I rave and still keep such an ambitious lifestyle.

I like this strategy because it lets you enjoy being a DINK and living the Urban lifestyle you want, while putting your capital to work. 

Many high end tenants are looking for a particular lifestyle, so location and amenities matter.

Some would conclude that this is special interest groups, and some that it is those business that the EX-governmental people go to increase their pocket linings.Governmental service, should be just that, a service that one does for the benefit of society, and not a lifestyle.

She is accustomed to having an income from your dad, probably, and the change in life style probably has not sunk in yet.

Unlike our investment properties, we always considered our home as buying a lifestyle -- schools, recreation, pool, waterfront, etc., how we wanted to live at that stage of our life.