You need reserves for the "what-ifs."

If you have enough capital reserves and you don't need the cash flow today but do expect to need cash flow in the future for retirement than I think you should be focusing on the future cash flow and not so fixated with today.Flame on!

Ditto on what everyone else said, but I will also add, what do you have in cash for reserves?

Our goal is to flip a few homes to build our cash reserves and then begin to build a rental portfolio for the long term.One question that I would throw out there is this: Are there mentors out there who will guide you through your first couple of deals for a fee?

In my simple mind, I tend to want to look at how long it would take me to build a 6 month reserve of "float" money based off of my net cash flow from the home.

With experience and reserves I have seen a 80% LTV but you never know @Chan Khim - I suggest starting a new post about this as your topic is different

I'm also building as much cash reserve as possible.

I’ve seen duplexes lower than $200,000 that are “homepath” – might be best to seek out a local agent who is familiar with this stuff.The only issues with these deals is regulations (which are good and bad), you will need the money, cash reserve of some sort as well as tax returns, etc. to qualify.I purchased the home next to me on an owner contract for a very good deal as it wasn’t for sale and controlled by a family trust that just needed some creative problem solving to get rid of it.

@Wade Guy Be sure to factor in repair reserves and vacancy.

You must have capital to manage the needs of the property in reserve, ether rehabilitating the property or even simply maintaining the property.