Or, if you have the money to get the loan, then get a second mortgage to replenish your cash or give you more working capital, that might work, too.And of course, you should speak with actual lenders.

Jeffrey, Operating expenses include taxes, insurance, management (even if you do it yourself), maintenance, advertising, office supplies, legal fees, evictions, damage done by tenants in excess of the security deposit, entity maintenance, utilities (if only during vacancies), vacancies, capital expenses (not technically an operating expense), etc, etc, etc.

. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://www.iht.com/articles/2008/09/07/business/fannie.php The U.S. government's planned takeover of Fannie Mae and Freddie Mac came together hurriedly after advisers poring over the companies' books for the Treasury Department concluded that Freddie's accounting methods had overstated its capital cushion, according to regulatory officials briefed on the matter.

That means there are great deals out there, but you will have to have the capital to hold most things for awhile...longer than you would guess or like.

You're young enuff, that if you lose your capital, forced into BK, you're still young enuff to start over, learn from your mistakes and still have time to make a killing in re and retire young.

Hi Cody, If you have little capital or no capital, Personally i think wholesale or discount notes would a great starting point in your real estate career.

That generated a pool of cash to use for the initial expenses, the down payment, and operating capital.

I just sign the letter, they hand write the envelopes, put on the first class stamp, and put a little heart sticker on the sealer.Wheatie, I am spoiled in that I have human capital to use as part of the system.

., expenses, vacancy and capital expenditures are no more than 40% of rent), then at a 10 GRM, your NOI is 6% of the price per year.

Then, whne the capital expenses occur, you pull form the reserves.