Yea of course I dont want to lose my shirt and I am trying to be very conservative, but didn't know if typically snowball most of their 1st property cash flow and try to get the 2nd, 3rd etc before some of those big capex items come to fruitionThe property has a brand new Water tank, brand new furnace, and roof is about 5 years old - so knock on wood nothing from those happens in the near future - of course unpredictable things can happen and maybe best to keep liquidity 

So the market they operate in just doesn't make sense; they can't beat the banks, and they can't beat the hard money lenders.I was also considering them for an LOC which I got a term sheet but after getting some more information on turnaround times (which could be 3 to 5 weeks) its just not going to work for me with that kind of a time-frame to close.I am currently looking into CoreVest where I got pre-approved based on the liquidity and financial statement/assets etc.

As Amber mentioned you will have a lot more liquidity on a duplex or single family than you will have on a property with more units.I also agree with the comments that that level of cash flow would be hard to attain in the current market without a decent cash down payment or unless you purchase a property with 4 or more units and 25% down. 

If you have a high risk tolerance, have adequate liquidity and have bought in a hot market, you can get away (not recommended) with doing light capex through revolving lines of credit. 

We only have about 6k in liquid to invest and even that is a stretch right now.

To do this with a non citizen involved there are significant liquid reserve requirements. 

I do not have the liquid cash.

I have been to a tax sale here in Texas where there was inspection time....it was for the liquidation of a business. 

But then I will be paying the $3-3.5k per month out of pocket, which I initially modeled in and the deal still works pretty well (as my mortgage amount is much lower and that is reflective in my exit proceeds and not the Sellers as they are tied to the exit sale price), assuming there are no liquidity issues (I have a large enough W2 to cover this pretty easily). 

I would like to use these home to get Liquid cash out of them to Purcahse more property.