For 18 months, my company will have me rotating between Houston, TX; Midland, TX; Oklahoma City, OK; and Pittsburgh, PA, covering both my housing and car expenses.Goals & Investment Strategy:My goal is to save aggressively over this period to build a strong financial foundation for real estate investing.

With stucco siding, tile roofs, and desert landscaping, there’s no worry about issues like heavy rain, ice, or intense wear on lawns.

I have some funds of my own, but not enough to cover the steep down payment. 

For simplicity, I did not include closing costs or loan points in the purchase price numbers, but did include a fee of 10% of the sale price to cover closing costs, commissions, and minor repairs.ModelsBelow are two tables showing the IRR for the traditional rental, using a 20% down payment, and the BRRRR models using a 75% LTV loan.

Lenders don't like borrowers without reserves.Is it risky if the property cashflows well at 100% financing, in an appreciating area, and you have plenty of cash in the bank to cover any problems? 

I felt that it was very well done, covered a significant amount of material, had a friendly and motivational feel, and was a good experience and a worthwhile value for $1500.

If you can do the deal yourself safely, with reserves to cover unexpected issues, it is a lot cleaner.

Something else I found with BRRRRs in my market right now is that even if my equity may be enough to cash-out everything I put into the deal, the rent I could get would not cover that high of a mortgage.

In retrospect, some yellow flags found by the property manager during the tenant screening are now bright red flashing sirens, but the tenant showed decent credit, had a positive previous landlord reference, wrote a charming cover letter in his application, and applied through the referral of a reputable real estate agent.

The underwriter of your loan may want to see your current property be leased and make sure that it covers your PITI, but that will depend on the guidelines of your lender.