Have/build adequate reserves.True example:I had an apartment fire that took out several garages on New Years and additional damage to two adjacent apartments from the Fire Department putting it out.

There has to be a big reward for taking on that big additional risk and not only the risk but the additional headache of how these deals are structured.

But more properties will be needed than buying in cash.Appreciation/equity paydown: Cash flow from rents will be supplemented by property value gains and tenants paying down your mortgage.As a rough estimate, assuming you can buy properties for $150k that rent for $1,500/month with 50% expense ratios, each property may cash flow around $750/month or $9k/year.

They can add it to their rent with each bill.

I am seeking to purchase BRRRR properties for long term investments as well as fix and flip opportunities for additional income in Brevard County.

Assuming this is the case (and excluding agents fees, costs etc) would the capital gains tax on the second property be 40k (gain since the purchase 315k-275k), or would there be some kind of recapture from the first 1031 exchange.

In that case, the best option remain is likely to wait for appreciate to raise the property and rent in the future to provide more cash out refinance options or simply find other ways to come up with additional down payments.

To this gatekeeper comes a man from the country who asks to gain entry into the law.

so most people will have to be as leveraged as possible to scale (at the beginning). as in, keep your LTV high and focus on buying 'as much' ($$) RE as possible. this is if you're doing a pretty run of the mill REI strategy like buy and hold. i came across an interesting guideline once: if you could sell today and net 7x+ your annual true net cashflow, you should cash-out/refi, or sell/1031. think of it this way: if your portfolio in a year is worth 1m market value, and you owe 600k, and have a lender that will do a portfolio loan at 80% ltv, you could cashout refi and get 200k to play with (minus closing costs). when you compare the now-lower cashflow from the existing portfolio (higher LTV & maybe different rate), to what you can do with 200k cash, THAT'S where it gets fun. maybe you lose 1k/mo in cashflow on the original portfolio (literally just made up a number, idk), but you can gain 2500/mo in cashflow with that 200k.. then doing the cashout/refi earned you a net increase in your monthly profit of 1500/mo, plus you're getting debt paydown and appreciation on "more" real estate, probably getting bigger tax benefits, etc.

. ;)  In addition, you may close on a lease/rental, you usually get commission in the entire lease term.