My net is 25% of our gross wholesales, and I'm only talking about wholesales here.

If it ever gots to pot consistently, then fix and sell. 

Continue pressing forward because there is a rainbow on the other side with a fat pot of gold aka your money.

So it makes sense when @Jay Hinrichs and @Brian Burke are building from the ground up, they are taking a accepted and informed risk for a relatively high return which seems a lot better pot odds then investing in the current crop of these low margin value-adds in which you are taking an unknown risk masquerading as low-risk for an acknowledged low return.

I view it as a distinct pot of money that shouldn't be unplugged, and loans against a 401k are bad news, especially if one gets fired, laid off, etc. 

Money Down" was extremely helpful, especially in stirring the creativity pot and helping me figure out ways to reach out to my current network to put some money together.

We still run that operation, we pay 36K a year to master lease the entire property, (sandwich lease) and we do 125K a year in gross rents, our net is about 80k.  

Net is more like $4500, which  about 6- 7% assuming taxes are 2kish, not a good deal for an Out of state investor. 

I set up my reserves as follows10% to Vacancy10% management even though I self manage now, later I will not.10% repairs 10% to Capital expenditures I will pot this money until I hit 10k reserves, this will cover most any expense that hits.My buying criteria is that after my reserves and Piti, I need 100 cash flow per door.Hope this helps.

Here pots legal, and evictions difficult..