Thank you Investmart, Cargren, Garth and Thomas for taking the time to reply. Shows me different ways of looking at the process. All good info. Thanks.

This may seem overly simple to some, but I am sometimes puzzled by the term cash flow. If two homes on the same block were identical with exact same costs and same rents how would the following work: Each house cost $300,000. Investor `A` of House 1 has loads of cash and makes a down payment...