Ouray's only 10 miles from Telluride, but its a 50 mile drive. 

Factors include the wording of the original agreement, when the original debt was due, how it was billed, and if the tenant ignored the bills and let them accrue.

However, I'm sure many of you have faced this problem before and have already figured out how to overcome it so that your cash reserves are not the limiting factor on the amount of buy and hold deals you make.Any feedback/ideas/suggestions?

I'm not quite sure what you're asking but I'll take a stab at it.I keep all my documents on Google Drive.

For me, it's not much of a factor since I actually flip in both of my markets and make some decent income that way.

What I would like is a simple strategy that won't burn up most of my liquidity I can rinse and repeat to build cash flow and wealth.I like the idea of building a single family residence and then renting it but I don't want to build these things all around the city and have to be driving around as a landlord all day.

If you have little money to work with, then use your time... post ads on Craigslist, attend your local REIA and any other Meetup groups, network, door knock, do Driving for Dollars, hand write and stuff your mailers, etc, etc, etcIf you have the money but not the time, then you pay someone to do the above things.If you have neither the time nor the money you won't make it very far...

In my experience dealing with 1,000's of tenants & even 1,000's of potential investors the fact that you know he drives a BMW is a huge red flag.

It is like trying to drive your car by looking in the rear view mirror. 

It is really motivating when you can see exactly what you have done, and can help drive you to want to tackle more.I wish you the best in your journey.