Prior to the 1986 Act, real estate investors were able to offset their rental property losses against their active income including w-2 earnings and profits from businesses.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

A desirable side by side with 3 bed/2 bath per unit will generally run $350k-$475k dependent on variables.

An ideal bank would  allows one to set aside tenant's deposit money in a separate account that earn decent interest and is landlord friendly.

The money isn't legally yours until it's earned, which is every month when rent is charged.

Only 15% have sold enough to earn around $100,000 this year.

Its not just about how much wholesalers earn as much as it is about their practice.

Your goal of purchasing that amount of property contradicts your desire to limit risks.

They discuss earning X amount of dollars per month. 2.

The owner had a strict no former gang member placement clause with the organization because those most consistently present problems, regardless of the convicts desire to rehabilitate.