set a standard: 10% return (even if you are not using your own money and re-cycling it): then you will no longer guess: this is important: bc it will be very easy to set the systems : this way your business becomes a money making machine: In the future, once everything is systematize: someone will call you with a "good deal" and you will simply plug in all the numbers and in a few mins you will be able to figure out if the deal is a good deal for you or not. 

All of which during that time we had our carrying costs and we missed out on recycling the velocity of our money.

Recycle that same $850k over and over again.

It is a tough time in the RE cycle to find SFR's that cash flow with traditional financing.  

If you want to be the go between on who can place their milk on which side of the refrigerator ... that's up to you (as long as you don't violate Fair Housing Laws) you have that latitude.What I'm suggestion is that legal definitions aren't useful in this situation.

The goal is for him to leave his job of 12-14 hour milk delivery, and for us to go full-time in REI and management (until we're ready to hand management off to someone else). 

Once  a buyer has bought a contract  chances are it will take 4 months before that particular buyer can buy again (only after the flip is done he can buy again)But for the next month you again need 3, 4 buyers..so do the math.. no need to be accurate here... rough numbers are fine as we did a lot of assuming.so you need 4x4 buyers.. 16 buyers to keep on flipping 4 contracts a month.After the first 4 month period, you will be able to recycle these 16 buyers again..

Goal is positive cash flow, recycle initial investment into subsequent purchases7.  

Let's work together to seriously milk these results, and break the SEO code!

My suggestion is to buy a foreclosed property, rehab, place tenant and then refinance cash out your down payment funds to either recycle into the next property using the same strategy or if you're only looking to acquire 1 property for now use the cash out proceeds to pay  401K back.