"It's kind of compounding the problem, I think." . . .The government's TARP purchases of preferred shares gave some banks a thicker capital cushion -- if only fleetingly -- which regulators hoped they would use to make more loans.

So I'm currently looking at buy and hold as an initial strategy, and eventually if there is some cushion there I'd get into some flips.

Even for cheaper OOS investments, you want a larger cushion for expenses.

You could potentially do a small flip, but it would have to be really small - and you wouldn't have much in the way of cushion if anything went wrong.I'd suggest looking for a partner on a flip. 

I personally look to add value as this serves as an equity cushion if values were to fall.

So for me, building a financial cushion but not putting off my first deal are both important to me.

Your numbers are certainly possible, but I would recommend you add some cushion in case things don't go the way you have them here. 

It cash flows well, but I refinanced to pull the money back out, there won't be much of cash flow cushion left if I need to lower the rent at some point in the future.

I keep a cash cushion that (I think) is adequate for emergencies. 

I have a high paying job and no debt (I don't own a home but I do have small mortgages on my rental properties). so I live way below my means, save as much as I can to further invest in real estate, and save to build a good chunk of cash in the bank as a cushion.