His position is about to get really bad.

Wouldn't rental properties then be in a favorable position?

Notice that there are at least two clear exits that work in this deal.Buy and hold as a rental with positive cash flow.Buy and sell (or flip before buying) for a lump sum.A good deal provides lots of ways to work it.

You indicated a 5-7 year hold time, if you amortize that cash over that time or use it as a down payment to lower the monthly mortgage and eliminate the PMI this should be a positive cash flow deal. 8)

All of the real estate investing books I have read emphasize the importance of generating a positive cash flow.

Does anyone have some intelligent, practical advice for someone in my position?

The original homeowners use that time to build their credit or otherwise improve their financial position.

I'd like to eventually find my rentals making enough money to stop working full-time, or sat least allowing me to go into an enjoyable business of my own with little financial stress.I like to think I'm in a good position to get started...but what do you think?

Last night, Friday, we placed our first 30 signs at key intersections of our target area and at a couple of on ramps to the freeway leading into downtown, so I’m positive they are getting tons of exposure.

If your financial position is good then I think you should not have any problem in getting loan...search more some good and reliable commercial finance broker, you will get better results than earlier.