I mean that especially in the beginning you have a lot of legwork to do and a lot of people to meet and talk with. 

Neighborhoods well maintained and a lot of small brick houses around the $120k mark.Rents look to be around $1,000, agreed?

Tennis courts, spa, gym, 2 swimming pools, 2 bars, 3 restaurants and a children's village all invite you to relax.

These guys are perfect for me because I have no experience, my credit is not awesome and all of my answers to their motivational questions were “Absolutely.”We really hit it off.Again, no credit check and no experience, and I was approved for $250,000 per deal (which would cover purchase price, closing costs, rehab, the whole deal) and a total of $750,000 in order to have 3 deals going at one time.They were very excited to let me know that, and I soaked it up.

Usually, they will have a CoC return goal and a IRR (internal rate of return goal).

Lastly the plan is to keep it long enough to help generate the cash flow for other deals and as long as I can raise the rents it would a keeper.

I have definitely bought deals from both wholesalers and a one or two agents, but a lot of the "deals" in my area are in very low end neighborhoods, which I don't buy in, though many investors in my area do.  

We bought two of our other small properties outright and a third we have a traditional mortgage on, so this isn’t something we are familiar with.  

You'll have to make a list of must haves and a list of wish items.To calculate your ROI, you have to run the numbers and look at the ARV.What are other people doing in the area?

When it comes to reserves, I dont use percentages for capex, I use real dollars, based on the age and life expectancy of large items (roof, hvac, water heater, and a buffer for other items).