It doesn't mean they can afford to invest (they actually can, not so smart move because they don't have a stream revenue to grow, I assume, there are essential needs for that stimulus check, not investing). 

Everyone thats read a book understands that Price=NOI/Cap RateDare I say that I think very few people understand that what that equation really means is that the present value of a given stream of infinite cashflows = that cashflow divided by the current rate of interest.  

Eric,So is the lame stream going to jump on Krugman for suggesting such a crazy, idiotic, Palin-like statement/.

- Nice digs - Adequate time for networking- No upselling- Quality speakers who are SME's in a narrow area of focus- Record this sucker on DVD and/or streaming video.

You can acquire one property with multiple streams of income from that one property. 

Investment decisions have to be weighed against other investment options both within the realm of real estate and outside (CDs, stock returns etc) and the viability of the income stream. 

The goal of the investors I work with is a life long revenue stream sufficient to meet their basic needs plus enough additional monies to enable them to do the things they want to do (travel, education for their children, etc.).

I plan on using savings from my day job and side income streams to purchase future properties.Im curious about legal structure (i've heard that it's best to have an LLC for every rental, then a holding company for all LLCs) which is not a problem where I live because they are very cheap to maintain.I've got a solid team so far, and am planning on self managing these properties for the time being. 

That being said, the math of what you're trying to do is the same that I'm trying to do with single family only smaller.To me, the answer to your question is that you can definitely take 400k and build it into an income stream of a million a year. 

But, I also invest for an income stream.