We calculate gross income as all dollars coming in except taxes.Our clients gross revenue is the room rate (top line) expenses minused out and then they receive their net income.Net profit (or loss) would be then when they subtract debt service, property tax, insurance, utilities, etc.

The DSCR will still have a personal guarantee, and whether reported to the credit bureaus or not it needs to be disclosed as a debt, so there's no benefit there.

One word of advice, keep an eye on your Debt-to-Income (DTI) can make it difficult to get all those houses in your name. 

Here's the secret: Use a private lender for your down payment/closing costs, and a regular private lender for the debt.

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

If you plan on moving and keeping the other property as a rental, it's imperative to ensure that the revenue from the rental far exceeds the debt payments from the new refinance since you don't want to create a negative cash flowing property, aka a property that cost you money each month.

This leads to issues with refinancing and could leave you with less equity or higher debt than anticipated.

STRs sound like too much work to me.Portfolio income = stock dividends, interest income (from banks, credit union etc), Master Limited Partnerships (Form K-1), Business Development Companies (Form 1099), bonds, interest earned from investing in a real estate debt fund, interest earned from being a private lender

So get liquid and get to know people who are liquid because the debt markets are going to punish valuations in a big way starting in Q2 2025 

Here’s a rundown of my current situation:- Own an S-Corp (landscaping) generating 70k a year- 160k in available cash funds- Credit score around 720- Zero debt- Own one property valued at 365k, 30% equity- Property is rented by the room generating $400 a month after mortgage and taxes- Additional 590sqft house is being built in rear of property for 60k.