One must have a great acquisition strategy and the ability to execute on the upgrades.

I’ve already identified the big market (city), now I’m wondering what research you do to determine if the zip code is desirable?

Does this mean I calculate all the money I've put into the property and then figure out my expected annual cash flow (after expenses) to determine COC?

The ability to use passive losses from real estate starts to phase out if your income is $125k, and disappears completely at $150k.

Only have the ability to borrow 45k.

Freddie Mac is the investor on the account, and it offers two methods to determine whether PMI may be cancelled.

I would like to network with other investors, possibly find a partner.I have time to look for deals, I have the ability to rehab, I have connections with material suppliers, what I don’t have is capital, or a vast knowledge of real estate finance.

Which I feel will block my money into it now which restricts ability to buy anything else. what you all suggest?

One of the advantages of private flood insurance is the ability to insure for the replacement cost. 

@Derek SchetselaarWhat are your friend's knowledge skills and abilities and when compared to the knowledge skills and abilities required of the various RE niches available to him, does he posses a competitive advantage?