We have some short term rentals and management that we are scaling in the area.

The same amount invested in the securities market stays fully deployed for the entire term - in other words, all $12k of the principal (the basis) is at work for the entire 5 years.

Hi Robin,I do a fair bit of business as a lender in South Carolina; a lot of short-term rental investors tend to focus on the Charleston & Myrtle Beach areas, but if you are looking for properties that are still reasonably priced and don't mind some renovations, Columbia can be a great choice 

It's hard to give up $7k/m in cash flow, that is just great income, but long term, having appreciation is very important too. 

@Christopher Lynch  NH has some amazing area's for Short Term Rentals.

If you can check these boxes off you would be able to start buying long term rentals with having owned zero real-estate prior to the first transaction. 

And the more motivated the seller is, the more willing the seller will negotiate terms and price. 

(Not that they actually set mortgage rates - but they influence them.)You now know that as you look at 2/1 houses that anything priced near or above $145,000 isn’t worth pursuing in the short term… so you look for ones that are cheaper than that.  

@Jay Hines I'm not sure that's how people would refer to wholesaling in terms of an investment strategy. 

Moreover, many use those terms interchangeably which makes it even more confusing.