When you do those interest calculations, you neglect that the 10 year note model costs you $72,000 over 10 years in potential cash flow (very simply multiplying current monthly loss times the number of payments, I understand that this is overly simplistic).

Rent control doesn't help.Using gross rent multiplier can help you eliminate a lot of properties without wasting your time on the calculations.

If someone has a vote count that equals 100% of their all in posts then they are probably a smart person (; The Vote Post Multiplier.

Levering up n times multiplies both the return and volatility by n, meaning if you lever the second investment up 5 times (borrow 5 x your portfolio amount), you now have an investment with a 35% return and standard deviation of 25%, giving you the same risk level as the first risky investment, but significantly more upside.Would recommend research The Sharpe Ratio together with Leverage for more information.Best of luck!

Finally, if you go to a local bank it probably will not help you get better terms, in fact it might even work against you due to stigma typically attached to an affordable project.In terms of starting out, you need pro-active property management, think the time and care you spend on your typical property multiplied by about 250%.

It looks similar to an interest only loan, but the $134.00 a month is not taxable now or upon sale of the property.I have made a number of assumptions for my second example:Rent multiplier of 1x the property would bring $1,000 a monthcosts P&I 500 a monthTax and Ins 200 a month700 a month costs = 300 a month cash flow - not a bad scenarioTax liability 300 a month - tax on principal increase upon saleMy mortgageRent multiplier of 1x the property would bring $1,000 a monthcosts P&I 500 a monthBank loans you an additoanal  $134 per monthTax and Ins 200 a month700 a month costs = 300 + 134 = 434 cash flow Tax liability 300 a month and no tax liability for principal increase. 

Who knew gold multiplied 100 times from decades ago.

Return on investment is much better in my opinion. when doing this you take your monthly return $125, multiplied by 12, $1500.

As a good rule of thumb, if you take your gross monthly rents from the property you are buying and multiply by 75% and the resulting number is still greater than your monthly PITI plus any HOA payments, you should see no detrimental effect to your DTI for future purchases.

So, if you want the monthly rents to be 1% of the purchase price, simply multiply the monthly rent by 100.