Eric, definitely a great start for you to break even so fast.

I sometimes wonder what I would have done, how I would have entered the industry. My answers would be: I would have probably be following exactly your steps. Starting with a reseller account is what I recommend to most people who are curious about the business.

However, remember that web hosting is far from being a gamble. After all, it is a viable business model that works almost for everyone who applies logic and good management skills to operate such a venture. But I do understand the frustration and unwillingness to spend money, and Denver makes some great points. What I would personally recommend though is to stick with your reseller account until you generate enough profit in order for you to make that step with larger confidence. Until you have that cash to make the transition to bigger and financially exhausting operations in a safer mode.

That way you can certainly avoid unnecessary costs and put yourself and your clients in danger.

Hope this helps a bit. Good luck,