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.

All of these were paid for out of the accumulated monthly fee with no assessment.We file a registration with the state each year and we file a tax return each year.

Everyone else is just in the capital accumulation phase.

Is it good practice to use time value of money while accumulating reserves, for instance $100 a month for 30 years accumulates to $36k whereas if I assume a monthly appreciation rate of say 0.66% ( backing off long term SPY rate at 8%) I get a figure of $150k which is heck of a lot different.

Investing in bay area locally is not easy and will take years to accumulate wealth for a down payment. 

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 fact here's an example of how the 2 have no correlation at all.You could earn $10,000 a year, have a 850 credit score and accumulate over a $100,000 in available credit to be used on credit cards or lines of credit.

You could also use the accumulated cash flow to pay off one property at a time while acquiring new properties.

Will it be amortized or interest only or lump sum with accumulated interest.

But it will also steer you away from "finished" properties that may look nice to the untrained eye but are disasters underneath the drywall.Also, having a home inspectors license provides a second stream of income that can help you accumulate enough savings for a down payment on an investment property.