Is there an flawed calculation, or am I missing anything?

If you're an old RE operator and doing this, you're just unethical as you should know better.I guarantee you, that as your tactics are uncovered in your community and with Realtors, HUD, fannie, banks, etc. you'll be on the quiet black list, HUD can bar you from doing business with them!

This is one of the major design flaws in their budgeting process.

Invest in a company until some scam is uncovered?

And from previous threads on here, they seem to be fairly unpopular.But at least for my situation, they seem like reasonable ways to finance rentals without having to liquidate stocks.Here's a summary of my situation and my thinking, I'd appreciate comments on where my flaws in the analysis are:- 8 conventionally financed properties, so I can only buy 2 more using conventional mortgages.- 12 mo expense reserves in liquid accounts (both for proof of funds and downpayments for new purchases)- Rest of my assets are in stocks/investment accounts.

As Bill and James pointed out above, there are some flaws in your assumptions, but the biggest is this -- there is no ONE RIGHT WAY to manage a rehab, manage contractors, decide who will provide materials, etc.While I agree with some of your points (and disagree with other points you made), the fact is that there is a lot of personal preference, personal circumstance and personal business methodology involved in deciding how to get your rehabs done.Investors are on site day 1 when we start, and back the day were done and never need 1 second of time in between.

I have an MBA and nearly a degree in statistics -- and I wrote several papers on game theory, including Nash Equilibrium problems -- but all the degrees in the world wouldn't give me any insight into the (sometimes flawed) reasoning that lenders and HOAs take towards their properties.Ultimately, this isn't a game theory issue -- it's an issue with rules, both arbitrary and lawful.

Maybe my approach is flawed.

Its flawed to compare the falling prices of computers with deflation.

At the end of the day it is clear to me that our country is extremely flawed, but there is no place with more opportunity, and nowhere else in the world I would rather call home.Just some food for thought.......