Hi @Mark W.!

Maybe someday they'll want to get a loan and will decide to pay you off to clear up the negative mark on their credit.

Mark N-CA (Sac-Placer area)

If you put $45k down and pay $500 per month negative cash flow --- you are not going to be too excited about your real estate venture in 6 months...You won't feed any better if your negative cash flow was $300 per month.After doing all kinds of rentals for 50+ years in Northern Calif, I realized long ago that negative cash flow and "crossing my fingers" hoping for appreciation was not good foundation for my planned real estate empire.Well, like you, because cash flow was most important to me an most newbie investors, I had to have a plan.  50 years later, and 250 rental homes, at my high mark, I will tell you what I did and why it worked..I buy groups of homes on a single parcel, usually 5 or more.  

The mark-up is based on that anxiety and fear that the buying and PM of rental property can't be managed by busy people.  

Anyway, usually with BRRRR you are looking to refinance out around the 6 month mark (depending on your lender), so normally you'd get pre-approved with a conventional lender before you begin so that you have a decent idea if you can refinance at the end.Being 2 years out, that's sorta tricky, and yes it sounds a little risky.  

@Mark Allen well whatever it is, it's seems the way to go for me right now.

@Mark Poulton the Millennials are the largest renting pool...buying homes even later than Gen X (age 31).

Additionally, all 10 units are three bedrooms and the appraiser deducted $20,000 and marked them two bedrooms.

REI for most as it is practiced here is more of what I call a Mark Twain portfolio: "Put all of your eggs in one basket, and then watch that basket very closely".