At $1400/month rent each day of vacancy costs $46 so maybe playing this game with the water isn't worth it.It just bugs me to pay $60 for one or two week ZERO gallon water bill. 

Ideally we want one that we can use on occasion and rent out the rest of the time. 

I would put it on the same playing field as...say...a public restroom at a rural gas station... 

I think the play is for entry level new construction, but it is inherently high risk.

I've heard more than one can play these games. 

Ideally I would like to get to 10 smaller single family homes in the next 5 years. 

Ron S is a little sarcastic but he's right... and as a fellow investor, I want to be able to play the game too, I dont want the deals sniped out from under me before I can make an offer... :)   Especially if its someone trying to use personal relationships to buy it for less than I would have. 

Hello Michael Davila I agree with Harjeet Bhatti ideally you would want around a 70% loan to value for that one house, if it is the only house in your portfolio.If you have multiple the 70% rule I would expand to the entire portfolio.I am currently in the same position of trying to leverage equity in my first home for another deal.Let me know if you need help with anything and happy hunting!

There just isn't fortune 500 companies that make their home in Phoenix and that relays to more of a up and down play of the long-term graph. 

Some sort of profit sharing arrangement with the investor so that your interests are alignedAll in all, I'd say it is a risky play, but in risk lies great returns.