I have heard from clients that evictions in California (and some other states) can take up to a year if the tenant actively resists and costs thousands of dollars in legal and other fees (not to mention the accumulated damage over the extended eviction period).

When you have a grasp on that area and you want to start accumulating buy and holds, then do that.

We know plenty of people who are looking for places to rent.We do not want to accumulate a ton of debt but would have no problem borrowing if we are able to cash flow all of the properties. 

So there is daily interest that accumulates and depending on the exact day the total payment is made the daily interest is added to the unpaid principal balance to create the payoff amount.  

You could do the same at the lower price point, accumulate a a few and package them up.

Would this hinder how many properties i can accumulate under FHA loans?  

I know I really wanted to start accumulating those "doors," but I was finding the numbers weren't making sense.  

Allow it to accumulate in a regular checking account until your monthly revenues have added up to your initial DP (in this case, $75k).

In this instance, you will likely be accumulating more in the account than you will need to actually spend in additional capital improvements.

I just lost a 22 year tenant, but don't shed a tear because I sold them a new house.I've written before about a friend who bought a new owner occupied house every year or so, moving from place to place accumulating those low down payment mortgages, by keeping the old places and renting them out, all perfectly legal.