With holding costs and resale costs, you would not have any profit, in fact, probably a loss.

Next, go to your state's Department of Revenue website and register for state payroll taxes, both wage withholding and unemployment.Good luck!

My main concern here is that you may not be including all the expenses that come with holding a rental property.You mention that you want to have $10k/month cash flow from 7-8 properties.

If you do a withdrawal, they will withhold taxes of like 25% along with another 15% penalty. 

:-(Not tying to scare you, but your best bet is to NOT WAIT for estimates and send pics and your best guess as to what things are going to cost (outlined in a line item letter with corresponding amounts foe each item for which you are withholding Sec Dep $$).  

They failed me once because the tenant ran cable through a room without securing it against the wall and put a shelf in front of a downstairs window, apparently an access violation even though there is a sliding glass door right next to it, then said they will withhold my rent if tenant doesn't fix it.  

That is the problem We have with holding at point.

Just curious :)I practice in DC for a national client base, primarily in the areas of information reporting and withholding, cross-border payments, FATCA, and employment taxes.

When we asked where rent was she said she was withholding it because of the laundry and storage costs associated with the bed bugs.  

Such as a Tenant can withhold rent for essential services not being provided.