I still have a few questions before diving in. I

To jump on this point, Rich has actually moved several times to the market he wanted to invest in. I

Purchase price - 15000 to 20000 depending on condition ARV - 35000 Rent - 650 Taxes - 700/year Using 3k as expenses and 5k for rehab (probably not needed if he just moves back in) I get the following numbers: 24% Cap rate, 15.8% CoC, 329/month CF

what is your experience in? I

I have heard that they are not a good idea because you are too far removed from being able to monitor the property manager and get to know the area you are investing in. I

Is that what you want to be and are interested in is residential??

How much cushion to build in is probably a personal preference you'll have to determine balancing your risk tolerance, worst case scenario management, the liquidity you have available to you that you've built into your model, and alternative contingency plans.Here are some ideas on how to structure your reserves and emergency tiers:Tier 1 - savings, checking, and personal property reservesTier 2 - capital expense reserves for rental propertiesTier 3 - lines of credit available via HELOC's, SBA 7(a)'s, personal lines, asset based LOC'sTier 4 - cash value life is a good alternative if you know how to utilize these policiesNot to be used in this exact order but each situation can vary.

The property Im interested in is actually the house I grew up in.

What part of Ca are these in? I

I am grateful for finding BP, as it has proven to be a wealth of information with a tremendous support structure built in. I