And it can be a huge puzzle to figure out where it's coming from (there was a long thread about this on BP a while back) Also- the financing you would need on these two properties would be hard to co-ordinate; one requires a construction loan, one doesn't...Frankly, I would really suggest you do not do this as a first property.

What piece of the puzzle am I missing?

You might also want to form more than one entity to handle different pieces of the puzzle: maybe one entity for your flips and one or more entities for your rental properties.

You have the puzzle now you just need to fit the pieces in the good circle... keep us posted. 

J, the puzzle of getting money out so to pay folks is one I am still chewing on and so I am glad you brought it up.

That's like trying to put a puzzle together without all the pieces.

@Dylan Eggers so it puzzles me a bit when I see people with money in savings and then a stack of consumer debt (auto loans and CC balances).

I agree that the most important piece to the puzzle in diligence is having the confidence to walk if the price isn't right.

I guess that is the next piece of the puzzle I need to figure out.  

That said, the most important piece of the section 8 puzzle is very strict tenant screening, and there is big demand for section 8 so you should be able to have a pool of people to choose from.