First, how long do you plan to hold, and second, what's your goal?

Regardless if you have skills in finding deals or have access to capital, without a good network, you won't close the deal.I agree you need a good network in real estate, but my issue with this belief is that too many aspiring investors get caught up in the networking process and spend little to no time developing actual real estate skills (marketing, sales, negotiation, analysis).

If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

They were conversating on how they didn’t have anything to spend it on and it was just going into savings.

I'd change the business plan and pick profit over passion but that's just me 

Let me know your thoughts, just trying to hash out a concrete plan. 

And that might require increased furnishings spend.

Are you planning on living in it?

Are you planning on living in one of the units?

Do you plan on making a documented improvements to the property?