Every dollar spent on operating expenses reduces your potential income.

The purchase price, construction/labor costs, and ARV are all higher here in California than most states so I already have a high tolerance for risk and have the necessary liquidity to scale. 

This attracts a higher-quality renter, ensures funds are available to maintain the home, and reduces the risk of major losses.

It has worked out fine for me, but it is labor intensive and I can't see it working long distance. 

If you share a house with multiple roommates, you could significantly reduce cash flow.Good luck on your real estate journey, and keep us updated!

House hacking can reduce living expenses but may limit roommates or share space.

There are several topical solutions that can be applied to the dog to reduce fleas.

Why not, it's a FREE labor and they know the Internet better than we, I do, seriously!

Basically we are looking to reduce our risk and if it defaults understand we would be coming after everything and anything.

The reason to do so is not necessarily to reduce cost but to be efficient.