Again, I'm not under the illusion that this is actually a passive venture.

There are also some blogs that are with checking out such as Money Illusion by Sumner and Interfluidity by Waldman.

Scott your being influenced by those that sell these systems.. they make money with the illusion that there is big money to be made can these schemes work sure.. do they not very often.... but you need to pay them to figure that out.. 

You answered your own question with your last statement:  If you don't refinance, your "higher cash flow" is an illusion.  

Hello,I currently have 3 properties under contract in Griffin Ga.1) quadraplex at 60k, fully occupied at 390 per month 2) single family at 18k, occupied paying 4253) single family at 19.5k occupied paying 500The properties are in decent shape, if anything maybe 3k in deferred maintenance on each single family, (probably needs new roof, but could also be put off for a couple years if needed)I have owned another property in the same town renting at 850 for five years, so I do have some experience but I expect this deal to be much more management intensive, (different income bracket and therefore different tenants)Financing: Getting a "bridge loan" using equity in the rental I currently own to provide the downpayment. 75% LTV6% interest15 year term3-year balloon good relationship with the bank (small community bank)Expenses: 1800 a year in taxes across all three properties I still need to get a quote but budgeting for around 2500-3k in insurance (conservative estimate)principal and mortgage payment: 900 per month Bottom line: 2485 in gross rents, around 1300 in PITI, so 1185 net per month before maintenance and vacany (which I'm struggling to quantify)Seeking any advice: I've talked to other investors in the area who have large numbers of these houses, and they say to count on spending around 2k per house whenever someone moves, but at the same time they have tenants who will stay for years at the time as long as rent is kept at or slightly below market (which all of the ones I have under contract are).I have no illusions about what I'm getting into, I am intimately familiar with the demographic that rents these houses.

Nothing fancy but we have no illusions of getting rich quick.

., the illusion of exclusivity is pretty much out the window.

Cash flow is an illusion of profit.

Actually, the return on paying off your home, based on the mortgage interest rate, is an illusion when you factor in the loss of the interest deduction.

Making a bigger DP in order to get positive CF is an illusion.