How much money do you plan to generate from this rental and do you plan to get more in the future?

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.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

I personally don't like to settle (and am risk adverse); so, I did both...went to college and have a portfolio of investments that generate passive income.

The goal isn’t to stack a bunch of properties, it’s to generate your cash flow goals with the least number of properties possible!

I randomly came across your post from about a year ago.  

@Priscilla ChinI invest in the Indianapolis metro area but I used to live there so I didn't just pick a random city.

The second piece is whether or not you pass the Material Participation Tests found in IRC 469 and the third piece is whether your participation rises to the level of Substantial Services (think hotel, B&B).4) My CPA Says I can't deduct a loss that was generated! 

My Co-Founder and I have developed a real estate platform that'll generate a Investment Memo.If you're still interested or curious to see what we create, let's chat more, thanks!

The PM company has to generate these owner statements and emails them.

@Dave GreenHere are the three options for generating passive income and scaling up a property portfolio: selling rentals and buying a multifamily property, paying off your primary residence, or holding rentals and maintaining cash flow.