Make sure your first rental cash flows well by running the numbers as if you were buying it today.

•I’d compare this deal to similar non-flood-zone properties—if the return is much better, it might be worth the extra risk.

Our bank will let us use equity that exceeds 25% across multiple properties that are either owned free and clear or where they hold the first so long as the deal still cash flows with however much cash is brought to the table.

However, buying with owner occupied rates and having a trusted and reliable tenant move in immediately made all the difference.On day one, I'll have $300/mo cash flow and 6.5% CoC rate of return.

The third property has a nice cash flow.I am wondering if there are steps I can take to reduce the cashflow issues of the 2 properties before obtaining another property, like pay down the mortgages or should I just save the cashflow from the third property to pay for any future expenses?

If it sold for $120K in 2007  , and your rent is $2000 a month , the landlord is probably cash flowing rather well .   

Good cash flow and equity upon completion.

That is important to know as you may have to pay that cash out of pocket.

Good cash flow and equity upon completion.

I must have cash ready.