I assume you're taking into consideration everything for the homes: taxes, insurance, vacancy, repair reserves, expenses (CPA, utilities, permits/fees), property management, etc.The way I have been able to purchase my investments in such a short span, is to purchase investments which need significant improvements, complete the improvements myself (I'm a contractor as my day job), rent the unit and then refinance to pull cash out.In addition to doing that, I went to friends and asked to borrow money.

This is confirmed with a contract that specifies all of the details of the transaction.

Then I would look for as many more rent ready cash flowing houses as my refi netted me, accounting for (per house purchased) 25% down, 3% closing costs, and 2% to go in reserves.

Some your houses are more expensive and will be hard to get those numbers.I, too believe your repairs/capital reserves are low.

You could write a letter confirming the verbal agreement you have with him - send it with certificate of mailing to show when it was mailed.Also, what does your lease say?

This one came in under what I borrowed for rehab so I even have some reserves to start out with.

Makes sense but I'd also confirm the markets check out based on other criteria that's been proven over time.

Hi Sophie, another thing you need to consider is that you should budget for some sort of reserves so if there is an unexpected expense or prolonged vacancy that you are still able to make your payments.

Erick, your response just confirms my statement that you don't know how to handle this.

It is important that your wife is happy, but if you are unable to build up a reserve fund, what happens if you need to replace your roof, AC, repair your car, or even worse you lose your job?