From my viewpoint as long as you're not losing money ( please take into account the future capital expenditure) then you're getting a free education. if you can get out, make up your mind and get out , else continue on and look for other ways to get cash flow from this property.

You would have to reach out to your network in MI but if you collaborate with them in some type of partnership I think it might be a good first investment tool to utilize.You would minimize your risk by partnering, reduce your capitol expenditure, taxes and you'd have eyes andears on your investment.

The more money in the bank the better, and keep a reserve for your maintenance/repairs and your capital expenditures, like replacing a furnace, or a roof and you will be okay.

The only concern I can see is expenditures continue to outpace revenues due to increases in salaries and pension costs. 

Unfortunately at the time, I didn't factor in things like Property Management fees, HOA fees and Capital Expenditures, so I basically ended up losing money each month for the next 3 years.

Originally posted by @Linda Lovely:Sell 12 doors.The road to bankruptcy begins in earnest when one starts to maX out credit funds to fund capital expenditures.   

There isn't a certain amount that will work in every situation, but $2,000 is very low and I would think $5,000 or $10,000 would be a lot safer.You wouldn't need to have that $5,000 or $10,000 for each unit as your business starts to grow, because the chances of having two big capital expenditures or two other disasters at the same time are minimal (especially when you only have 2 or 3 rentals).

But really depends on the specific situation, your relationship with the seller, Sellers motivation ect...Also keep in mind this does not factor in what the potential capital expenditure or rehab cost will be.

If you build that into your plans and still can meet your cash flow goal then you are doing your best to also minimize future capital expenditures that will eat up your cash flow.

You should also factor in that, in addition to the loan payment, you'll need to factor in periods of vacancy, repairs, big-ticket items like a new roof or HVAC ("capital expenditures"), and the costs of a property manager.