It just doesn't seem make sense to collect rents on free and clear properties. 

However if you only invest it in training, then at the end you have lost $50,000 and still don't own anything.There are a lot less inexpensive ways to learn about real estate in my opinion.Don't fall for any high pressure techniques from any guru.....the typical scenario is to go to a free 2-3 hour training session. 

My advice for you (and my future self) so far is:- be very detailed about underwriting your deal- add at least 30% to what you think your rehab will cost (even if this figure came from a GC)- have a really detailed design concept before work starts (including fixtures/trim/color scheme/etc)- check with your city/township's building department and see what permits you need up front- have more than one exit strategy- add a few weeks/months to your projected timeline- purchase cash if at all possible- build relationships, take notes, and learn lessons along the way- have funGood luck! 

My recommendation is you talk to a lender on how much cash you will need. 

Purchase price: $182,250 Cash invested: $73,000- Residential area that is close to University of Rochester- Spent $20K in renovation of the aged unit and increased the rent from $750 to $1,450. 

Cash flow can be good.   

The most glaring example: "taxable income" is very different from actual profit as measured by cash received.2.

Once the DADU is finished, you can refinance your property, ideally through a cash-out refinance, to pay off both the HELOC and the construction loan.

My first deal cash flowed $300 a month, and the second $500.

Most Costa Rican mortgage loans require %50 down which we have the cash for but we don't want to tie up that much of our liquid assets in one property as we intend to buy a 2nd property in the next year or so.