currently we do about 500k in  a low month to 1 million  a month in this paper and I would say 75% of our clients are moving from landlording to being the bank.. they dig the cash flow just don't want to deal with the tenants any longer.. plus you don't need to be accredited you don't get pooled  into a big pot.. pretty cool alternative for placing cash today other than sitting in the bank.. but their are lots of other places to put money realively safely that is not tied to real estate if that is what has you worried.

It is everything from blinds, artwork, furniture, pots, pans, silverware to wine openers.

That way if things go well, you end up in a lot of deals together, but if one of your buddies isn't as involved, there are no feelings hurt if you go a different direction on the next deal.Most importantly, I  think of real estate investing as a crock pot, it takes a while until you have enough rentals fixed up and renting to the point where the cash flow from rents each month is meaningful.  

@Sam LLoyd The extra $2600 was an input mistake, so I just totaled the rent and put it in one pot.

The most humorous part about this deal was the walk thru was done with a local realtor and the 55 year old son was IN the property surrounded by pot seeds and beer cans...

We have another pot set aside for more interior improvements. 

I do have a "pot of money" for reserves but it's a lot more than $5K.

Here is something that will stir up the pot. 

No, be smart about it, get an education, no matter how easy or fun anyone makes R.E.I to appear, its hard work, takes capital...And more importantly it takes time to be to sucessful, unless you have a pot of gold to push you faster...For me i love real estate, i live it breathe it,eat it and sleep it....make sure this isnt just a faze, or you watched to many episodes of flip this house, now its got you excited, be sure you love it before you choose to throw away an education. 

Speaking of cooking equipment, some people make the deadly mistake of placing their old pots and pans in a vacation rental.