Using a binder for those same better quality tenants does the exact same thing for them, but covers you in case they decide they don't want to move in.

Some property managers will do it for less than 10%.Be careful using a friend at a discounted rate unless they have experience and could likely do a better job than a local property manager.Many property managers only charge the flat percentage rate which includes finding, advertising and screening applicants and showing up to court.  

Let's be clear and address the gorilla in the room; using a hard money lender is not cheap.

My first deal was a 4plex using a seller carry

Using a brand new strategy can be intimidating.

I am taking the other side on using a HELOC in an up-trending interest rate environment.  

I am using a credit union on my current purchase and so far they have been OK.I have been focused on Warwick/Cornwall school districts to date. 

Because I bought my current home using a No Income Verification loan, and it was relatively easy. 

Using a loan will generate $20K+ of interest expense that you may or may not be able to deduct currently (the $25k passive loss limit phases out between $100k and $150k of gross income, unless you or spouse qualify as "real estate professional").On the 12k per year, did that include all of your condo association fees?

John has fantastic, succint advice for how to approach real estate investing.Michael is right that a business plan is not needed to invest in real estate, but I disagree with him about using a home equity line of credit to purchase your next home.