After the 3 year private money loan is paid off the property will cash flow very strongly.

She's extremely sharp and someone you'll want to develop a strong relationship with. 

@Sam Collins I don't know the Houston market but what I'm seeing on a macro level is that the market is still strong.

You are in a strong negotiating position with them. 

If rental demand is strong in your market, this may not be as much of a problem. 

Leveraging your money (20% down but controlling 100% of the asset) will get you there much faster and the risk is pretty low if you follow some basic rules (know how to calculate cash flow, buy smart, maintain a reserve, have strong policies and procedures in place for renters, know your laws, etc.)

As long as your tenant has a history of strong employment and no evictions, with a decent credit score, you'll likely be okay.

Simultaneously, you want to look for good contractors in all areas of renovations to keep your contractor pipeline strong.

We have a relatively strong income coming in from our full time gig and it's time to let our money make more money.We were initially looking at single family residentials in our area, and lost 2 offers we put in, because the money wasn't right otherwise, which we are totally OK with.

Line of CreditPros: Reevaluated every 2 years, extra payments can increase line (can set up sweep account), mortgage payments stay lower if line isn't utilized, keeps strong relationship, can be everlasting source of cash.