Sure recipe for disaster, in my opinion.Would also say a big resounding NO to debt - find an affordable market (and you don't have to limit yourself to your own back yard, the world's full of those at any given time, even if there's nothing around your home town at the moment), and don't give in to the temptation of easy money.Kenny Estes wrote a great piece about that one, and I couldn't agree more - http://www.biggerpockets.com/renewsblog/2013/07/24/real-estate-leverage/(all of the above is just my opinion and experience, of course.

It is widely known that there are saturation limitations for underwriting loans regarding occupancy of the condos in a complex.

Lately I've sent tenants at two properties (single family homes) certified letters in order to establish for the record that they had not yet submitted their checklists even though about two weeks had passed since their move-in date.

Thanks everyone for your quick responses.In general I'm just trying to understand the limitations and benefits for using that line of credit.

If you find a guy with 20 properties you will find multiple banks loaning the investor money because most of the small banks limit outstanding loans or cap the total outstanding loan amounts.

Homes in that area that are up to date are selling in less than 60 days.

LOL..Now that I have disclaimed that, most people who are self employed need to have 2 years of Tax returns (sometimes 3) and most likely a year to date P&L.

And be sure to set up some Keyword Alerts to stay up to date with the stuff that matters to you!

The rent price is fixed, same date every month, and a large expense.

The potential "tenant" came to you on the day of move in and said, "look, here is the rest of the deposit, but I'm going to move in next month and prevent you from earning a months income because it's not convenient to my move-out date."