I'm finding some interesting numbers:If I go the HML I can buy twice as many homes, but I won't make ANY money on them until after year 2 and I have a 30 year note on each house.If I go the small local bank, and only finance Purchase and Rehab, I can only afford to buy 3 houses before my startup capital is expended, but I make money in year 1 and I only have a 15 year note on each. 

They have been there for 35 years, are not looking for a fight, are just doing a job, and we both work together to a solution. however, with them gone, younger personnel will be promoted, and these are lesser experienced folks many of whom feed their families by working for the IRS, and so they are looking to make a name for themselves and can be less interactvie and /or flexible.In conclusion you will be able to exclude most but not all of the gain, even without aggressive expending.

Explain that because this is typically a slow time to find tenants, "efforts of all involved" should be expended regarding this matter. 

The only other things I would remember to factor in is the initial cost of furnishing the unit (obviously completely filling a unit with everything from a couch to TV to plates and cups and linens isn't cheap at the get-go.) and then the costs of expendables (toilet paper, paper towels, dishwashing detergent, cleaning supplies, etc.)

Most newcomers get bogged down in the rates, but the terms are so short that the actual dollar amount expended for financing often isn't that bad

I am currently a student (studying nothing remotely close to real estate) and have very little expendable income to truly start my investing endeavor.

I am looking to expend my portfolio to Wisconsin.

I have good credit and saved up about $10,000 of expendable funds and would like to start investing my money!

My plan is to keep expending the marketing into other markets by adding more independent wholesalers as more buyers request our assistance locating properties.

Think about it; when the unit is vacant now the PM and the owner no longer have an income stream, the PM faces losing the door altogether, the PM has to expend considerable resources to find a new tenant, do more work, etc. all of which cost the PM lots of $$.