I keep all of my reserves in a savings account earning 5.25%.Another consideration is how much steady W2 income that you have to supplement repairs and maintinence as issues arise.

I would then like to take my cash flow and start investing in SFR's.I have a decent job and am mainly looking to supplement my income.

I've spoken to many successful rehab investors in my neighborhood and most started as agents/brokers and than began supplementing their income with rehabs and buy and holds.

Are you taking supplements?

I'm open to getting a loan to supplement any extra income I may need.

@Adam TafelAs a Loan Officer Anyone who is in the process or was considering a ReFi or new Purchase I suggest you continue to make timely payments .Any new lender will run a supplemental credit pull which will have the most current history from your mortgage company .

Also, if you have other sources, like a 401k loan, to supplement the cost, you can make this work, as long as you can cover your mortgage payment with the rent, I would keep it.

I think the big question for me, is your ROI enough to supplement what you would have in the 401k at retirement time?

I also demonstrated how we could have money available from our investments to supplement our retirement savings and have excess money for travel, she then got even more excited (these were hot spots for her, as her parents both retired with no savings and she never traveled as a child).  

I want to supplement an income learning how to invest until it can become the income.