Please feel free to ask me any questions you might have if you ever find the desire to invest in that market area.

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

For properties that size I'm not sure cap rates will give the best story, but for the sake of answering the question, cap rates are a level of desirability in that sub market. 

I desire to make $80,000 annual cash flow income from real estate in one year.  

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.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

You will earn more in the end.If you want me to assist with setting up something similar to what I have, feel free to reach out :) 

I would say the less desirable areas of Dallas county have a pretty nice ratio.

@William Johnny If you want to get into real estate, you mostlikely need to be earning $100k plus, yoi should get your real estate license and start aprenticing under a seasoned investor.

Check Greatschools.org or Zillow.com for school ratings.Investment Strategy:A-Class Properties: Lower risk, lower return, suitable for long-term investors looking for stable, high-quality tenants.C-Class Properties: Higher risk, higher return, appealing to investors with limited capital who can manage more properties for less initial cost.In summary, choose your investment neighborhood based on your risk tolerance and desired return.

is it a desired location?