But sometimes I question the reality of it.

I typically program out a five month hold for all of my deals, although reality is 3 1/2 months.As you can see from my application worksheet on a cash basis my cash out-of-pocket is an excess of $280,000 plus holding costs $3067 my cash net profit on the steel would be in excess of $47,000 with a 17% cash on cash return.This is where leveraging your cash comes into play if I finance to steal my cash at closing is slightly over $32,000 my holding cost over five months are slightly over $15,000 (Paying rent for the money and loan costs).

I love the idea; intellectually embrace it - but reality just kills the whole thing...

While low interest rates in 2020 have helped real estate deals with yield/cash-on-cash, the reality is that as the spread between interest rates and cap rates will normalize and many real estate deals may struggle to deliver a preferred return of 8% in the first few years of operations.From my experience 8% has been the most common preferred return with 7% being the next most common.

I'm sure there are stories out there but the fact that I am unable to find such stories, and I'm really really searching for one, tells me there is more motive by attorneys tell us fear stories than the reality actually is. 

And the general reality of rents being regressive pretty much everywhere means that the lower value markets are better cash-flowing.

Home 3 we purchased in April, with a HELOC from home one's increased value and working on rehabbing and most likely be putting on the market to sell.That all sounds great, but the reality is less rosy. 

You have a great opportunity to do that given the reality of today's financial and real estate markets.Given the current interest rates and strong market, you have two great options:1) 1031 (sell and avoid capital gains tax if the $ is reinvested) your property into another investment, possibly with more doors that cash-flows at a higher margin 2) Refinance and pull out $ through a HELOC for a downpayment on another investment property.It's worth emphasizing the opportunity of the present moment: Interest rates are at historical lows. 

That might have been true decades ago, but the reality of your chosen path is that everything you need to be successful in REI exists on the internet. 

The redeeming factor is that the rent ratio is comparably high to the value, but in reality you're experiencing the dirty underbelly of the wholesaling industry.