It’s extremely powerful to compound your earnings, which means you want to legally minimize or defer your tax payments as much as possible.

If you go this route, negotiate so there's minimal impact to your income.

When pitching the deal, highlight these aspects.

Personally I would pick option 1 because you cash flow is already high and so a slightly lower cash flow with higher LTV has relatively minimal impact on cash flow.

How did you handle or minimize these expenses?

With minimal risk and the opportunity for a quick turnaround, this deal aligned perfectly with our investment strategy.

*Reston Next Development*Source: NEW: Developer plans next phase of Reston Town Center expansionSource: Boston Properties makes rare pitch for next phase of Reston Town CenterSource: Reston Town Center is close to 100% leased.

While some lenders focus on minimal documentation and fast turnaround, they often lack the flexibility and understanding needed when challenges arise.

Cashflow is minimal at first, usually enough to pay for the occasional repair and you are paying close to retail price. 

. $140/month vacancy reserve (5%)Rental Income: $2800/monthCash Flow: -$134/moTownhouse:Note: Looking at low price units on the market for < 7 days to possibly get more value / minimize mortgage paymentsPurchase Price: $450kMortgage Payment: $2150/monthProperty Taxes: $1900/yr or $159/moUtilities: $300/monthProperty Insurance: $125/monthMaintenance (5% rent) + Capex + Vacancy (5% rent) Reserve: $500/moRental Income: $3000/monthCash Flow: -$232.64Detached Home - Single UnitPurchase Price: $600kMortgage Payment: $3193Even if I can get $3300-3400/month for a 3-4BR home purchased at $600k, maintenance and reserves will cause it to be negative cash flowDetached Home - Two UnitsPurchase Price: $700kMortgage Payment: $3831Property Taxes: $3500/yr or $292/moUtilities: $300Property Insurance: $125/moMaintenance (5% rent) + Capex + Vacancy (5% rent) Reserve: $860/moCash Flow: -$608.57Are any of my numbers way off?