If I had a real estate license I could immediately shift gears into listing mode and get a listing contract and work to find a buyer for their property which I could not do as just an investor.

Cashflow is key to success and survival in real estate. 

I do agree with @Giovanni Isaksen's friend's assessment of the three dimensional model, although I am very optimistic that if you take the time to learn, the development model is achievable.

TLO will take you about a month to get but well worth it if you do plan on making skip tracing returned letters part of your business model. I

@Steven Mitchell One of the largest benefits to the FHA model is the low down payment on multi-family properties.  

Some say sell or cash-out refinance enough properties to have enough cash reserve to support minimum 5 years of recession and assuming 30% rent drop; in addition, keep the short term loans LTV below 65%, so the 65% LTV can survive a longer recession (such as 10 years recession) by able to refinance the same loan at 75% LTV to another 5 years (assuming a 32% house price drop in the first 5 years).

One of the big benefits of the model is that it helps you to think about and consider costs you may not have accounted for e.g. vacancy, insurance, property management, etc.Sanity Check w/ Mentors: sanity check your game plan, financial model and deal with people who know what they're actually talking about to help you poke for holes and update Validate Your Numbers: sanity checking with folks is the first hurdle but make sure you check on certain costs by calling and getting numbers specifically for your market and the situationExecute The Gameplan: if everything looks good, I'd maybe double check one last time but then move forward and execute the transaction  Ultimately you get to decide the best path to move forward.

In this model, I have 16 units, each profiting about 300 dollar per unit per month (4800 a month). 8 of the units rent for 25 dollars more per month than the others, with similar expenses.

Hi, Our investment model is to enable investors purchase superior bank owned homes (REOs) at significant discounts and also to provide complete property management services for REOs purchased through our Turnkey Property Management System.

If your model is based on market timing, you are counting on luck too much.