I think what both of you are saying is that likelihood (or probability) is less when you are not leveraged (fewer units) , The impact could be more severe than if you leveraged and owned more units Let me quantify Basis From example above $300K start with $50 K houses / Rent $750 Expenses (%50) $375 ( you still have taxes and insurance regardless if you carry a mortgage or not) Appreciation 5% Option 1 Buy 6 $50K houses free and clear Starting equity = (300K value – 0 Loan Balance) = 300K Income = $750 Expenses (%50) $375 Cash Flow $375 Times 6 units = 2250 Month (same as Mr Duncan Demo) Option 2 Buy 12 $50K houses ($25K Down, $25K Financed) Starting equity = (600K value – 300K Loan Balance) = 300K Income = $750 Expenses (%50) $375 P&I (25K at %5 for 30 years yields monthly payment of $134 Cash Flow $240 Times 12 units =$ 2880 Month Risk assessment / Management While the probability of getting a bad tenant is more with the greater # of units, The IMPACT would be less: Risk Analysis Hazard : getting a bad tenant that late/skips on rent Effect: you lose one months rent ($750) Probability of Incidence (PofI) = in our example 1 in 20 (5%) Option 1 PofI = 6 units *(.05) = 30% chance Impact + (-$750 cash flow ) -> Net cash goes from $2250 to (2250-750) $1500 a (%33) decrease Option 2 PofI - 12 units * .05 = %60 chance you get stuck Impact = ((-$750) cash flow -> net cash goes from $2880 to (2880 – 750) 2130 = 26% decrease So while the chance Is greater with multiple units , the impact is lessoned due to the other income streams.

Another option with the internet connection would be a cloud-based setup like CudaEye, where each camera holds footage and streams it to an off-site server.

Then a book called the Income Stream by Goodman (can't remember his first name) takes you through how to build the calculations into a spreadsheet.

I love to play just about all of them, but aside from an occasional movie I don't even use the TV.

There is a street I know of that DOES have a stream under it and many of the homes on one side of the street spanning several blocks have water problems in heavy rains.Somehow and for some reason, someone called it Lakewood Avenue...go figure.

Solid stream through Craigslist as is the case throughout my landlord history. 

With a consistent approach this method will result in fresh leads being brought in on a regular basis from the field as well as over time a steady stream of phone calls from the cards, fliers and signs positioned in the neighborhood.Another broad method of drawing sellers to you is marketing.

Ideally, I would like at least a decent stream of additional income on top of that, but I’ll settle for covering the costs of primary residence as a start.

That quote is my own twist on a quote from the movie The Santa Clause: "Seeing isn't believing.

There is an old Jimmy Stewart movie called Harvey --  in it is a quote I strive to remember and put into practice:  "in this world,... you must be oh so smart, or oh so pleasant.'