Part of owning rentals(Correctly) is having proper reserves, so you should have the reserves to meet the higher deductible. 

Here's a clip from the article in the Gazette:  Colorado Springs continues to be one of the country’s hottest housing markets, a federal report released this week shows.Local home prices spiked 11% in the fourth quarter of 2019 when compared with the same period a year earlier, an increase that ranked No. 2 among the nation’s 100 largest metro areas, according to the Federal Housing Finance Agency.Only Boise City, Idaho, with a 12.7% gain in home prices, had a larger increase on a year-over-year basis, the agency’s report showed.

Option (1) Purchase price: $148kGross rent: $1700ARV: $175k25% reserves for Vacancy, Maintenance, CapEx, PM + PITICash flow: $417/mo 11.94% CoCSeller will replace roof, retaining wall, Sewer stack, and Oven but NOT HVAC - 1st estimate came in at $13K. 

@Carrie Alluri the benefits of using a PM are usually reserved for actual clients... and yes this is mortgage fraud.

On the brokerage side, if you can educate clients on their options and ability to use the state VA loan in addition to the federal, you’ll be light years ahead of other folks.

Have you inspected the HOA reserves.

And all it took was an initial $33,000 from a 401k I had with a company I worked for before transitioning to a federal job.

And all it took was an initial $33,000 from a 401k I had with a company I worked for before transitioning to a federal job.

If you flip you can compound the cash and build up your reserves to invest n other properties and keep going.Brrr is a slower strategy and leaves cash in the property you could otherwise deploy but you refi tax free so there's that as well. 

In my scenario, I found a bank (Navy Federal) that is willing do to a $40K mortgage but they only have a HELOC option and no cash-out refinance option.