The points made here apply equally well to flips with the added point that miscalculating the ARV (or having the market move on you between purchase and sale) can prove ruinous.The key takeaways IMHO are as follows:Taking on RE projects without sufficient capital is a sure fire way to lose money (unless God is on your side for some reason)Picking a RE investment is even harder than picking a stock because you do not have an even relatively efficient market pricing these assetsThe risk number (like the "easy button" in those commercials) just doesn't exist - the concept of "risk-adjusted return" is often no more than wetting a finger and holding it in the air   

I think 2 cubes high is sufficient. 

If you used all of it your buying power would be $900k plus but finding a building up in that price range is rather difficult when you have to use the self-sufficiency test.Chicago Areas that I still like that that you can find some decent deals would be Bronzeville, Washington Park (if you are okay with southside), Hermosa, Avondale, West Irving Park, etc. 

But on the same token, It is workable.

He asks that when the [bank check, money order] clears, you send the substantial overage back to him via [Western Union, Moneygram], and being the honest person you are, you agree....4-6 weeks pass...The bank where you deposited the [bank check, money order] calls to tell you that the [bank check, money order] didn't clear because although it was written from a valid account that has sufficient funds, it was a forgery. 

How common and are there significant/sufficient benefits to have a Master Holding LLC own sub LLC's (property deeded to the sub LLC?) 

The Self-Sufficiency Test does not pass the requirement (PITI ≤ appraised rent x 75%).I got in contact with another Lender B who is telling me the self-sufficiency test is required only when you need the rent pay back to supplement your income as qualification for the loan.

I installed what's technically a game camera to the exterior of my out of state property for not much more than 200 bucks and is totally self sufficient.   

This scenario is often considered favorable for investors, as they can earn a positive spread between the property's return and the financing cost, potentially enhancing their overall return on investment.b) Lower Cap Rate than Interest Rate: If the cap rate is lower than the interest rate, the property's income may not be sufficient to cover the borrowing costs.

For anyone just getting started, currently house hacking, or even for seasoned investors, I'm constantly reminded to not discount having sufficient cash reserves.