The other advice you are getting is excellent too, I guess when I was that age I could not really 'reduce my expenses' any more, so the next best thing was 'increasing my income' I was able to save up about 7K per year that way, and that was 30 years ago when minimum wage was around $3 hour or so I am guessing.Good Luck, Dan Dietz

I'm surprised Jay didn't mention this, but rather than wholesaling, consider getting you RE license and work part or full time as a realtor to earn while you learn and build capital.

I then intend to re-invest the cash flow from the rent collected, plus another $60k from earnings saved from my jobs for the following year.

It is not the investor per my above example of reduced return.Another angle to this dilemma is the evaluation of the part of the partnership which brings the education or "know how" segment.

That $3,636 will reduce the taxable income the property generated. this means on the free and clear property you have to pay tax on $6,364 where the leveraged property you only pay tax on $3642) Wrapping 2 or more properties into one loan is commonly know as a blanket loan.

You can put your equity into a nicer neighborhood with better tenants and less capital expenditures (if you aren't already in a nice neighborhood) and also reduce your involvement by hiring a property management company.

Sounds like a great way to purchase a home for a reduced price. 

Having to hold onto the house and pay those carrying costs, for longer, because you didn't study up on the FHA Flip Rule beforehand, and/or estimating the lower sales price because your pool of potential end-buyers is now significantly reduced once FHA buyers have been cut out.

I have more funds available to put towards a DP and rehab costs just want to maximize my total leverage while reducing overhead costs.Thanks,DB

I would diversify my money and split that "earnings" across several sectors.