Hi Guillermo,Your experience with the single-family residence investment highlights several key aspects of real estate investing.

It would simply sit in your passive bucket and rollover to future years, negating the benefit.

@Paul FlorezI would myself be hesitant to refi and go negative with my cash flow.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Areas experiencing growth in population usually see a corresponding rise in housing demand.You should then delve into real estate market trends, examining aspects such as property prices, rental levels, and the average time properties stay on the market.

in year one it has a negative 10% annualized return and then in year two it says 7%. 

I will definitely be applying everything you mentioned.When you price down during off season does it positively or negatively affect your monthly earnings ? 

Quote from @David Alonso: Thank you for the advice, I didn't know it was against the lawThanks Only certain aspects are against the law, but I don't want you finding out later, after it's too late.

@Wendy JiangBe honest and say no as mold testing is typically only done when there are visual signs of mold and has never been any signs or complaints.There are many factors outside of mold that can contribute to breathing problems.I would offer that if you wish I can order a hygienist to come to teat for toxic mold - but if it’s found to be negative the costs for the testing would be at your expense.

I was looking at a specific cash result.With that in mind I never accepted a bad deal (negative CF) because it served no purpose, and only forced a step backwards.