However, banking on appreciation is a dangerous plan even for experienced investors.

Sometimes the licensed broker is not involved in the operation (this is dangerous).Make sure there are no hidden fees, that listing broker doesn't try to collect from buyer or buyer agent, that you get on the local MLS, that you can cancel free, that changes are free,that open house postings are free, that they work on weekends.

That condition would be equally dangerous, but I would hope that investors would be intelligent enough to spot and avoid that condition just as they would spot and avoid the other kind too ... perhaps we are giving other investors too much credit, though ...

So I can achieve a final income number by holding a large number of leveraged, modestly cash flowing properties, or a far fewer number of free and clear maximally cash flowing properties. 

John Galang Oh the dangers of theoretical pro-formas.

Other than having the cash tied up for a few years, what are the pitfalls and dangers? 

I know just enough to be dangerous and not the details of all this or the limitations.  

I have found fewer and fewer "deals" on the website lately.  

Susanna on this thread ONLY listen to Bill S  LOL  his information is correct and he gives you reality.most folks are just giving you blue sky and what you want to hear.SUB TOO for someone like you who ( if your stating your funds are limited) is exceed ling dangerous to the SELLER.. and any seller in their right mind would never enter into a deal with you.Foreclosure lease back bailouts in many states are totally ILLEGAL Oregon they are  and it appears Colorado Your agent while semi correct is confusing a few key components.. so again Bill clears that up for you.Also having done quite a few of these before the laws changed..

This is a dangerous assumption.