Your accounting will be standardized and consistent without counting your knuckles.Biggest issue is being consistent, in real estate pro-rations of odd days charges are done on a 360 basis.

Not only is it a "breakeven" property, it will count against your debt to income ration substantially if you want to get a loan for another house.

I enjoyed the thorough analysis of this problem, and am happy to see the wider industry giving some rational thought to the Stabilization Problem.I was so inspired by Steve's presentation I had to dig out this almost 12-month Old Slide Rocket Presentation. (10 slides, 3-4minutes)http://portal.sliderocket.com/ALQRN/IntroMTSWhen I read "BofA Offers Leasing Program to Select Customers Facing Foreclosure" http://bit.ly/HdfarJI was thinking this is an Idea...

So be cautious on "it's already settled"-- it is sometimes a rationalization to do less than what's really needed or to make a thin deal seem like it will work.

Plus, the expense ration is 0.027%.

If you need any help with the math on your real estate test, I have free videos posted on You Tube that will help you with pro rations, per cent of profit, commissions, amortizations.

The advantage is that your debt rations are better for 15 years, if you have a tight month, you obligation is lower, if it ever turns into a rental, it will cash flow better, the interest deduction is greater in the early years and total interest paid is still reduced.I say on any loan, any secondary market loan, or govt. insured program.

Will the second bank ask my owner-occupancy clause from first bank or simply focus on my income to debt ration?

In my example above, I was given a tax credit for half the year based upon that pro-ration (4277/12 * 6 months =2138.50 tax credit).

This is a ration between the amount of money i have in the deal (down pmt, rehab cost, etc) and the amount of yearly cashflow.