They use the cash for cars, trips, toys, and yes, even real estate.It is a tool, but a tricky one.  

I have toyed with the idea of looking for multi families in the UCF area, but many investors have warned against renting to college students.

Make sure the roof, furnace, etc is going to make the long haul.

Just wanted to give you all an update, since I started toying with the idea of REI (month ago ish) and joined BP, about a week ago, I have learned alot, but on to the good stuff, no deals yet, (I don't even have enough money or contacts to feel confident wholesaling yet) but I have done this...1. found a two decent potencial investors, (one on BP one CL) I'm in the process of scheduling video conferences with them as I'm out of my target area (Sacramento, CA) for a few months.2.

You'd be surprised how quickly $90,000 cash can turn into -- Take property Sub2 with a loan balance of $86k plus drop-off a u-haul trailer and give them $1,000 cash for a security deposit on a new place.

I have been toying with the idea of REI for a few years and I am really serious about starting out.

I hauled over 250,000 lbs of garbage to the dump.. plus demod the house  cost 60k ... but  I am in it 320k and listed at 695k... just for the land.. so if I get that sold anywhere near that..

Using a HML is the cost of doing business and it should be expected, therefore, you need to consider building a relationship with your HML for the long haul.

Your primary focus should be the people - an amazing cash flow prop can easily turn into a huge anchor if the people you trust to manage it drop the ball, so focus on looking for a team (turnkey or self-assembled) of people that you trust to be with you for the long-haul.

Your PM is the exception, as they should be with your for the long haul, so it's in their best interest to keep you happy.