How do you feel about a $700k purchase price with a non owner occupied 4plex DSCR loan 3yr prepayment penalty, 10yr interest only 30yr fixed after$560k loan amount (20% down)7.750 par rate with no costs. monthly payment $3,616.66Or pay $22,295 in closing costs and get a 6.375% Monthly payment of $2,975The monthly payment difference between the two is $641.66And when you take $22,295 in closing costs and divide it by $641.66 that will give you 34.5 months (2.89 yrs) to break even if my math is correctHow do you guys feel about taking a lil less than 3 years to break even on $22,295And the seller is giving me $15,500 in seller concessions  thank you everybody for your help!!

Just want to clarify how you got there, to get to $12K you divided 1.2M by 100 lots (of which 60 has homes on them and producing rent, 40 lots are vacant). 

Our property manager mentioned that they cannot collect rental income for one property and divide it between multiple SSNs.Here’s their suggestion: "They are operating a business, and the IRS considers it a partnership.

Then divide that net cash flow by your total cash invested.

Then add those up and divide by 12 to get a monthly average.For example:Peak Season: $5,000 rent at 80% occupancyOff-Season: $2,500 rent at 50% occupancyShoulder Season: $3,500 rent at 65% occupancyFormula: Monthly Avg Rent = [(Peak Season Rent x Occupancy Rate) + (Off-Season Rent x Occupancy Rate) + (Shoulder Season Rent x Occupancy Rate)] / 12This will give you a realistic estimate to plug into your calculator.If you need further help with financing or running the numbers, let me know!

Run the Numbers: Focus on key metrics: Cash-on-Cash Return: Annual cash flow divided by the total cash invested.

If you have a move-out every year, that would amount to a vacancy percentage of 14.3%; two divided by 14 (12 months tenancy, plus the two vacant months).

No, the “great divide” isn’t between residential and commercial, nor between owner occupied and rental.  

The way I advise my borrower's is to take the savings on your monthly mortgage payment and divide it by the cost to buy down the rate.

My husband and I would divide and conquer.