However, when my buyers use hard money, it frees up capital so that they can get multiple projects going at once.When it comes to hard money, you eat away at your profit margin with interest, inspection fees, and origination fees.

And it would be illegal for me to pass that fee on to the renters, meaning I would have to eat a fee for every payment.

I am now looking to purchase a 3rd property but I wont qualify because my 2 mortgages are eating up my income.

They start eating each other.

It’s basically the same idea as eating healthy to prevent things like... death from happening.

That kind of money, on top of all the expenses of operation (laundry, snacks, etc.) can really eat in to potential profits.However, it can still pay your mortgage and all utilities fairly easily. 

The most successful folks I have known started with seemingly crazy ideas and risked it all to make them come true all the while nay sayers in bleachers were tossing flour and eggs.

With condos, make sure the condo fees are reasonable (they will eat into your cash flow), the condo is well run, financials are good and rentals are allowed.Don't overpay. 

I quickly grabbed some lunch that was being offered and told the guy we need to eat first as we havent eaten all day.

Need your boots on the ground.  9 locations can't be eating up 4,740 units.