Fourth, to purchase a commercial property at $2 million you need about $500,000 and that doesn't include a reserve for the inevitable problems that will pop up in the first year.I don't know you, your personal situation, your experience with real estate investing, or the property you're looking to purchase.

We don't close in NJ without confirmation that all permits have been opened and closed for what has been redone and confirmed at the final certificate of occupancy inspection.

In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

Do you have cash reserves in addition to your down payment funds? 

I'll have to double-check and confirm...Anyway, assuming it IS their internet, it's probably not okay to leave them without internet for a week or so to get that work done.

@Vanessa Ch - recommend that you connect with a lawyer, the SF tenant/landlord hotline, or the SFAA (san fran apartment association) to confirm ... too much incorrect information out there by folks who aren't lawyers or vetted.

You don’t say if you are doing flips or rentals, but flips will require significant money for renovations, and rentals can be tricky for beginners… like: do you have reserves to put in a $6,000 A/C if the one in the unit blows up?  

Can anyone confirm definitively what the calculation is for determining the federal capital gains tax on the sale of a long-term asset (rental property) for someone in the 15% capital tax bracket?  

@Douglas Spence I am near closing on a cash out refi that will actually lower my payment (slightly) and provide a good base of cash for down payment to purchase those properties while also maintaining adequate reserves. 

May need letter confirming from CPA details.