Another draw back is short term your expenses will be higher because you are paying the mortgage plus paying back the loan but that is a short term draw back until the loan is paid back.How it works: I have experience with my wife's company and mine, each is a little different. 

 @Jessica Frisk I would not be keen on the 15-yr fixed rate mortgage if that makes you cash flow negative.

Many banks handling tax escrow accounts for mortgages have mistakenly thought there was one tax due twice/year or totally missed one of the taxes.Investors should research the SEV and the Non-Homestead property tax millage rates to project what the property taxes will be after adjustment.

(Unlike mortgages.)

We owe $154k on the property and the interest rate is 4.25%, the monthly mortgage is $1050 with taxes and insurance.

Originally posted by @JC Wu:Account Closed Thanks for the mention.For the last 3 years we have only offered our properties to cash only investors.When you have one of the best reputations in the business, you get to choose how/who you want to sell to heheWe don't believe in leverage and suggest investors first understand the "beat" of their portfolio before using leverage to further expand it.Too many investors get sucked into low class properties with leverage that end up costing them a tonne of money.So the promised land of less work and financial freedom turns into a nightmare as now they must work harder in their 9-5 to cover the losses/mortgage on their loosing real estate portfolio.IMO it takes 2-3 years to truly understand what you can expect from a net return on investment year after year.Most turnkey providers don't give a crap who/how they sell as they just want sales and have no client criteria.Sure, we could be like many others and offer deals via financing, manipulate appraisals and supposedly sell properties for fair market value.I've been in the game long enough to see/know almost all of how it works.So for folks thinking that buying with leverage is safer, I suggest thinking again.We just don't believe in such an approach and in return only retain 10% business out of all inquiries due to our no leverage policy.Still, I don't think we will ever change because it's just a painless process for all involved.Thanks again and much success

There are also millions of households of undocumented individuals holding mortgages.

@Charles EvansFrom my experience, having rental income of $1,400 to offset a $2,600 mortgage, leaving you with a $1,200 payment, is a manageable setup with an income-to-mortgage ratio of 28.5%.

I currently have 20 mortgages right now.  

If the property requires rehab, the Realtor and/ or Mortgage Broker will suggest applying, for a FHA 203k Loan.