Then get a local bank to do a portfolio loan at 70% ltv and you could take each one down with 7k apiece......Assuming the properties cash flow, you should be able to replenish that fairly quickly.

My thinking is that if I keep a fund aside for maintenance, CAPEX, and vacancy, I can use all of the cash flow to pay down the principle over time - lessening the overall amount I’ll end up paying for the place and also allowing me to use all of the rental income to supplement my retirement income in the future.Here are the numbers:List price: 575kRental income: 3525 (easily increased to 4K quickly after purchase) - with all 4 units rented out.CAPEX, mntc, vacancy 5% - 200/200/200Management 8% - $320Insurance - $110P&I (3.5% interest) - 2582Operating expense (including CAPEX, mntc, vacancy) - 3,612Without CAPEX, mntc, vacancy (~10k fund set aside and replenished as needed) - 3,012This leaves me roughly 1k per month to apply towards the principle.

We've saved about $60K and I'm looking to start with a small note ($10-20K) and then when our savings is replenished from the note payments plus monthly savings buy another one similar to the Bond Ladder strategy (https://www.schwab.com/public/schwab/investing/accounts_products/investment/bonds/individual_bonds/bond_ladders). 

Thanks to my W2, I'm ok with keeping some cash in the deal (~3-5% of ARV), as long as I'm able to replenish the cash faster than I use it up.I'll definitely try to get multiple LOCs.

I think that the monthly rate is intended as a way of making sure that your monthly cashflow will support replenishing that cash reserve after its been spent.

-how much to have on hand for new deals, when to have it, and if allocated, when to replenish by.

I told him I would try to offer, but I need to replenish my funds.

We told some of the tenants to let us know if they ran out of anything so we can replenish.  

My wife and I now have 8 homes using our Turnkey provider and average $4k/month in income replenishing a self directed IRA to fund additional rentals all completely hands off.

When you get a great year of conventional returns of 8% or 12%, if you only took out 4%....you'd replenish some principal.