That HE loan would make you cash flow negative on the first property, especially considering you are not even factoring in any repairs, maintenance, vacancy or management.

Teak REI is more about appreciation and value add versus cash flow which is primarily negative until the harvest period.Are teak plantations a good investment?  

But they have NEGATIVE CASHFLOW, until the day you quit investing.

If you pay more, you won't meet your metrics and will probably have negative cashflow and/or equity.You may have to make 10, 20 or even 100 offers to get one accepted at the price that meets your numbers.This is what all investors did BEFORE the Great Real Estate Crash of 2008-2010.

Because I live in a neighborhood that has no crime but it shows up as very high crime because we had two neighbors who would call the cops over each others dogs barking so it lit it up to show it as negative…

What you will have is an RE that is cash flow negative that is unlikely to experience significant appreciation.  

FYI this is reason #42 why I only offer MTM leases. 

Institutional lenders will look at your non/short employement as a negative. 

I was stuck with negative cash flow and not enough equity. 

I only ask because the main purpose of an LLC is legal protection, and if you don't have a large amount of assets to protect, say less than $1M...you may be putting the cart before the house, and it may make more sense for you to focus more on finding and closing more deals.