Danielle,I have been passively looking into properties here in Prescott, and nothing even comes close to the 2% rule.

An investor who had agreed upon this in writing, pulled some shady strings and forced me out of the listing when we closed escrow on a flip. 

I’m closely monitoring a few tenants as we speak. 1 requested to pay this Friday after payday due to a job change. 1 is $200 behind from last month. 1 got a rent increase but still has this month at the previous rate.

The others were bid pretty close to market value (not much value add).

Scenario 2 If I use plan to purchase property, I have access to quick cash for closing but then I can refinance and have passive income to make contributions w (or not).  

Just closing the loop on this thread...

@James You need to buy your clients "Runzas" From Runza as a closing gift.

You can also go on title with your investors in the name of your LLC not your actual name and instruct escrow to wire you your percentage of the profits and your investors principle and profits at closing.  

As you read these books, watch the BiggerPockets podcasts.

Each time it was close to running out, it was raised again.