The modest cash flow could be reinvested, eventually allowing me to build a portfolio of income-generating properties.I recognize your point about needing $2.5M–$3M in cash to consistently replace a six-figure income.

You are missing my point on taxes.Scenario 1:  Your partner buys the house at the same time you put your cash in.  

Sadly, it seems that cash flow on long term rentals with 20% down just does not exist in most desirable locations.

I have enough liquid money for the down payment for the hard money lender, but that'll leave me with zero cash for closing costs, realtor fees, etc.

If I have some cash do you recommend clearing the loan or invest instead for next property with proper planning ? 

Purchase price: $3,636,000 Cash invested: $700,000 This is a brand new 40 home build to rent manufactured housing community.

They had exhibited the desire to pay down debt and had cashed out the parks before us that had agreed to owner finance.

I own the two homes next door and rent them for 1425 and 1350/month plus utilities.  3% annual appreciation.I would be putting 20-25% down on these and would be cash out refi-ing from some other properties for the down payment or possibly paying cash for deal #3+4. 

The reason is the rent-to-price ratio is good so you can cash flow, and most of the West side doesn’t have a Point of sale inspection which is really annoying.

Self managed HOAs are usually undercapitalized so you want to take a thorough review of the condition of the community to make sure there isn’t deferred maintenance because you might get hit with a special assessment if the board isn’t setting aside cash for those capital improvements.At face value, taking into consideration my typical financial objectives, I wouldn’t do this deal unless it was a much lower price.