I will admit that it was difficult at first to set money aside because all throughout college we barely had enough money to pay our bills and now we both had good jobs and had a significant amount of additional income.

If this is the case, you might want to collect additional deposits and/or modify lease language to mitigate your risk and aggravation.

Worrying about things beyond our control will just lead to additional stress and serves no purpose.P.S.

the more properties you have the less reserves per property you need and the safer each additional loan is.

The HML lender will provide additional draws throughout the construction process.So, here's the tricky part that I'm still working on, which is funding the construction throughout the process to keep the work going, because I don't want to wait on the draws to be reimbursed MY OWN money.

Zillow has already stated that its target is to net just $3-$5k per deal, and by volume, create an additional $1B in revenue.

.- Purchase a 2-4 unit with an fha loan- After one year, I can buy a 1 unit with a HomeReady loan w/ 3% downB)- Don’t refinance fha - Buy a 1 unit with HomeReady loanThe opportunity cost here is not refinance get fha and missing out on an additional stream of income from getting another multi.I just started with my research and I know there is more out there.What I highly suggest those starting out to do as a short term plan is- buy a 2-4 unit with the HomePossible loan w/ 5% down- after 1 year, buy another 2-4 unit with an fha loan with 3.5% down- after 1 year, buy a 1 unit with 3% downI heard this plan recently on the JF1401 podcast.

It doesn't stop here though, because the addition of the apartment added massive value to the home we are able to access more equity which we are going to use to build 2-4 more units in our back yard (we have a large backyard that runs all the way back to the other street. 

In addition, the more creative real estate finance minds aren't handling these smaller loans.

So, in addition to paying interest on the unpaid interest, I have to write you a check for $250,058.86 at once, five years from now.As a seller and lender, no way either.