Hypothetically, if I found a property with strong rental demand, the income could cover loan payments, operating expenses, and generate a modest positive cash flow.While this example involves upfront risks, the idea would be to leverage my father’s expertise as a contractor to minimize renovation costs, boost the property’s value, and create a long-term asset that appreciates over time.

One thing to be aware of is the FHA multifamily self-sufficiency calculation which determines if a property can generate enough rental income to cover its mortgage payments.

My property generate 4100 per month and it is a 2 family.

Or we gradually perform high-quality updates for a live-in flip, then roll the equity into a new home.Regarding rental income, we aim to boost income, lower our effective tax rate by generating more low tax-drag income with rental income (since there’s not much we can do to lower out W2 tax bills) and have retirement cash flow.To compare the financial impact over 10-20 years, we want to analyze renting versus flipping.

The second you are introducing metrics to change your marketing that have nothing to do with generating the leads you need, you introduce uncertainty to your systems. 

When you invest in 1-4 units residential property in the Bay Area, you are investing for the appreciation or value-add potential because most properties don't generate positive cashflow.  

Sometimes, there is also a tenant already in place which means you can start generating rental income from day one.

Then you 2 would agree on how you would split the profits once the property is generating cash flow and the original equity is returned.

A $500k property should produce gross annual income of +/- $50K but can generate as much as $65-70k with the right location and amenities like a hot tub.

But timing and planning are crucial.Here's what you need to consider:Future Passive Income: Do you expect to generate passive income from other sources?