However, if you buy with a sufficient cushion of free cash flow after all expenses and reserves, then you ought to be able to weather a downturn.Of course, as others have said, finding strongly cash flowing MF properties in this market is very difficult, given the competition from well-funded investors and institutions, many of whom are buying on a speculative basis (crazy, right?).

It isn't fun when you have no cushion and something breaks.

The deals were not economic, did not have the margins and cushions that investors need. 

That's doing pretty well, though it isn't much cushion.

Budgeting a cushion for unexpected repairs helps me cover the cost of these repairs without derailing the entire project.

I have been able to take some of that equity and put it towards another downpayment while also leaving a cushion with the remaining inflation to not become over leveraged.

Based on your salary and yearly 20k cushion you're in a great position for a BRRR strategy.

It wouldn't be a bad idea to set aside all of your cash flow at least for the first few months to build up a cushion because when you need a new HVAC, its not going to cost x/month, its going to cost x all at once.

taxes - that seems to be an issue in that part of PA - make sure all your numbers line up with taxes - and $479,000 does seem to high a price to pay for those units, from what I have seen.just remember to calc in the cushion for deadbeats, repairs and to pay yourself for the management

22 years of age$15,000 in student loansno other debts$50,000 salary, secure job$4,000 in savingshere's what i'm thinking:residential duplex/triplex/quad--i will also be living in one of them in order to save money for cushioning while being a landlord.increasing the value of the home through a discount price, inflation. demand and forced appreciation. within a few years:1031 tax exchange to pyramid up.I understand that my plans are broad and the blueprint is yet to me entailed through this post butmy question is, is this a smart first real estate investment?