I love accumulating assets.

Banks, however, do consider your 401k as reserves, which can help you qualify for a loan.Hey Kyle,Are you suggesting that when you open a new bank account for your property, you transfer all of your reserves for that property to that account, and then use that same account to accumulate rent deposits and to pay mortgage/expenses?

In order for an investor to re-balance his or her real estate portfolio away from high-risk holdings, he or she will need to be selling real estate that has accumulated built-in gain.

South Philadelphia 4BR/1BAProjected ARV: $185,000Projected Financing: $148,000Equity: $37,000Down: $5,000Project: $900/rentHypothetical Cash Flow based on 7.5% I/O Loan:Cash Flow: -$232 including taxes, insurance, and maintenanceYearly Cash Flow: -$2784Assuming 4% steady Appreciation over 3 years(South Philadelphia's pocket is doing better than the metro area: click here http://www.goppelt.net/phpi/phpi1q07.pdf for the Philadelphia report and see page 18. )3rd-year Potential Sale price: $208,099Less Accumulated Cash Flow: (8,362.20)Less Cost to Purchase: (5,000.00)Less Cost to Sell: (17,688.42)= $177,048Less Debt Service: ($133,200)= $43,848 Net profits/loss before taxes[b]Potential ROI : 876.97%[/b]This investor CAN put 20% Down to ease up on the cash flow:3rd-Year potential sale Price: $208,099Less cash flow: (4,402.20)Less cost to purchase 20% Down + $5,000: (34,600.00)Less cost to sell: (17,688.42)= $151,408Less debt service: ($118,400)= $33,008Potential ROI: 95.40%If you can see what I'm trying to prove, investors who put 20% Down for cash flow/break even have a lower ROI.

., to accumulate points)?

So we accumulated & sold a LOT of 'investment' properties & then simply held the notes, retiring from my JOB in '98.Many insist they will get conventional financing & pay off our high rate financing, but so few have.

Takes less than a day accumulative to underwrite. 

For now, my plans are to: Continue adding into my savings account to accumulate enough for a down payment, acquire a credit card to establish a line of credit (card suggestions?)

Also, I first accumulated my own pool of cash before buying anything.

When you retire and start drawing on your accumulated cash, you are taxed again (#2).