This means that not only do we lose the unpaid assessments, but we may also owe the management company the continually increasing pile of late fees. 

Are you going to continue your investing locally? 

This can also bolster your case if the tenants continue to act in bad faith.

However, if single-family homes prove financially viable, I’m happy to continue building in that niche.Since these homes and projects are significantly cheaper than my market, the risk is relatively lower for me and can do at least two at a time.The ChallengeOne of the biggest hurdles is finding reliable contractors and subcontractors in the area.

If you have to continue saving do that.

This isn't to be contrarian, it's just not to deal with saturation.If you know these markets, continue to invest.

Daniel,Memphis is a great market for investors and we have continually seen growth in both rental rates and property values. 

My endgame is to end up with $300k/yr in post-mortgage income in 20 years based on investments I make now followed by continued investments over the next 10-15 years own.

Keeping your current townhouse rented enables tenants to continue paying down the mortgage while you scale.2.

Use Fund 1 and 401k to buy a cheap house with in walking distance to the hospital to continue saving money.