I've got my two purchases from this year on the market at the moment and am just sitting here watching the drip, drip drip of cash walking out the door as we wait to find a buyer. The drip seems more like a gusher at ~$2K per month so if we fail to sell in 6 months we will basically start reaching the break even point and could lose money. I'm hesitant to buy another property right now as I have less than $20K in cash reserves, although I do have a $20K LOC @ 16% available if I get desperate.
I've been watching the progress at Flip Thy House where that investor is doing what I am and has about the same goals.
I'm not sure if the foreclosure crisis has passed, but I have noticed that banks seem to be unwilling to take the large discounts in short sale packages that I have submitted in the last 2 months. The number of foreclosures in our area also seems to have decreased. I'd like to get a house under contract before I purchase another one so I am not overanxious to buy at the moment.
The lack of liquidity is probably the most difficult part of owning real estate. If the market is in a real downturn it can turn sure profits into losses if the property is not occupied. If I don't get some action, I may have to think of alternative exit strategies in the upcoming months.