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.

You now have a higher-value property that is ready to rent.Rent: Once the rehab is complete, rent out the property to generate monthly cash flow.

Finding quality tenants is crucial for generating consistent rental income.

Additionally, as Gino said, when you are raising capital from passive investors who are relying on you to generate their profits, you are selling securities and must follow securities laws; i.e., you need to learn how to "syndicate" real estate.

For rentals, focus on properties that generate solid cash flow after covering mortgage, taxes, insurance, and maintenance.

I could literally put 200k in brokerage and receive 80k for the loan with 7% rate, and generate 8%-14$ return from the same investment LOL

This leaves me to consider mid terms rentals as a way to generate above average cash flow while having a reasonable amount of management. 

The education and health services sector alone added 23,800 jobs in the past year, reflecting a significant expansion in these industries, particularly in healthcare and social assistance​.Proximity to Major Employment Centers: Greater Heights offers convenient access to key employment hubs such as downtown Houston and the Galleria area, which are major attractors for residents due to the short commute and abundant job opportunities​.Education: Nearby institutions like University of Houston and Rice University contribute to the area's appeal.Infrastructure Projects: Ongoing developments like the East Blocks Redevelopment and BioHub II at Generation Park enhance local amenities and attractiveness.Investment InsightsGreater Heights Rental Market Trends:Single-Family House Rentals:Median Rent: $1,350 for 1 bedroom, $2,695 for 2 bedrooms, $3,250 for 3 bedrooms, and $6,100 for 4+ bedrooms​​.Stability in rent prices with modest YoY increases: 2 bedroom rents increased by $195, and 3 bedroom rents by $250​​.Median Sold Price YoY ComparisonApartment Rentals:1 bedroom apartments saw a YoY increase of $305, 2 bedroom apartments by $667, indicating strong demand for these unit types​​.Available Rentals:High availability of both house and apartment rentals, indicating a robust market that can support new rental investments​​.Sales Market Trends:Median Sale Prices:Significant appreciation in home values, particularly in 1-bedroom homes, which saw a 190.7% increase from $215K to $625K​​.Other bedroom counts also showed positive appreciation, e.g., 2 bedrooms (5.3%), 3 bedrooms (6.5%), 4 bedrooms (17.4%)​​.Market Activity:Increased number of homes for sale and sold, suggesting a dynamic and active real estate market.

For instance, a beachfront condo with a spectacular, beach view from the living room and balcony, priced around $600K, only generates a gross income of about $50K.

I have heard mention of some investors contacting local title companies and having them generate these lists for only a couple of dollars.