Mike M: I hate to be a negative nancy but I see a number of problems with your math here.1) You are calculating cap rate with income after financing?

Im 20, and I just started 6 months ago.I used to think being young was a disadvantage starting out, because I thought people would talk down upon me.However instead of looking at the negative, I realized being young is an advantage, because most adults I talk to say you remember so much more of what you learn at a young age, and you just have a lot more energy to go out and do things.I just go in with that attitude now.

You need to be putting that aside to build up the reserves.If this is a cash flow negative rental (rents are less than my multipliers above), and you don't have the ability to fund the shortage from your other income, you MUST sell.

A run down junker or a bunch of dead beat tenants can result in much lower, or even negative, cash flow.That's just a quick and dirty analysis to determine if its worth digging deeper.

Your mortgage should be no more than 50% of your rent or you probably have negative cash flow.

So, when a 5% earned income tax cut comes along, the wealthy are already optimizing for their tax burden (likely by a decreased amount of earned income), and it's very unlikely that they'll actually be able to benefit from the full 5% earned income credit without negatively impacting their tax burden somewhere else.

I currently am just under breakeven on it, so technically I'm negative on the cash flow but it still beats selling.

It was a HUGE negative.

In certain areas here, when building new, you have to conform to new setbacks (yes they actually changed in some areas) so that could negatively affect your foot print and square footage.

The only relation is the mortgage lending that is not subject to any lawsuit.The positive sides of this approach are . . .1) Lawsuit risk is only on main LLC with limited equities exposed.2) Majority of the asset value are very safe with the 2nd LLC.3) No management contract and checks needed between two LLCs.2) Little or no insurance is needed for the 2nd LLC.4) Terms of Mortgages can be arranged in favor to our cash-flow.5) Accounting and Tax to file for the 2nd LLC is very simple to DIY.I appreciate any opinions and comments of all aspects, especially the negative sides.