Please advise, how does this work?

My advise was for someone who isjust starting out, has no previous deals, little equity. 

Things like our own website, craigslist, etc don't generate a drop of traffic compared to what we get through the big two.I'm all ears.

Rather it matters what kind of return you can generate over time.

A - Invest $100, add value to $120, market corrects to $100 in year 1, but you achieve an 8% return from cash flow and principal reduction.B - Invest $100, add value to $120, market remains as-is (or it takes longer to correct), you achieve target returns of 15-20%C - Invest $0, earn $0.Substitute appropriate figures...just trying to generate dialogue.It's hard to model things like a market correction or rising cap rates, get excited about lower returns, and make a purchase but idle cash and the war chest strategy (scenario C) can be costly relative to scenario A (except with an appreciation only/market timing strategy...let's ignore that one for simplicity).Many of us have analyzed and turned down a ridiculous number of deals and we see a lot of posts about waiting for a correction but the math seems to suggest otherwise if investors are adding enough value (and generating cash flow, using long-term debt, buying in solid locations, or investing for the very long-term).  

@Ned Carey , @Mark Cruse Hey guys, so I have been able to acquire to rental properties in this city so far (buy and hold) and they are both generating cash flow.

If she has a job she will ultimatly pay to clear her record and be able to rent in the future.I can't recommend a lawyer but would advise that you study your landlord tenant regulations and file for eviction immediately.

Any recommendations or advise would be highly appreciated, thank you in advance!

Do you think it's better to do a FHA on a true duplex and take the increase with the mortgage insurance or to do a cheaper single family where I could create a basement apartment as a makeshift duplex paying the 20% to keep the mortgage low and easier to cover with the rent it would generate?

Please advise..