I'd be giving up about $300 in interest to make an additional $34k/year.If its relevant, I'm 29, have about 1.5x my annual income in my 401k and want to build my real estate portfolio to supplement retirement since I plan to retire well before I'm able to draw on my 401k. 

If not, I will very highly recommend that to supplement what you learn at BP.Even though I am from Chicago, I invest mainly in NW Indiana, because of better returns and more landlord friendly government.

Going into retirement soon, I am considering rental income as supplement to limited social security benefits.

I would like to work another 15-20 years and if I can get 10 properties now getting me 1,000 a month then by the time I retire I will be mortgage free and have that cash flow to supplement my income.

Some even supplement the properties monthly to carry the expenses.

First if you think market rent is 1200 charge them 1200, why would you choose to supplement their rent out of your own pocket to the tune of $100/month.Second do not provide them a term lease.

Suggestion: don't take one person's view as the sole truth and stop there, instead supplement what you read by also chatting with experienced lawyers/lenders/investors and looking at the actual legislature.2- research High Cost Mortgages and High Price Mortgages.3 - sign up for news alerts from HousingWire and InsideARM.

The only way to combat this is with a much lower purchase price, where your high cap rate and low basis can overpower the financing disadvantage, or with some type of supplemental financing.  

You can supplement with more REI using available funds and when you finish your commission, you can complete the portfolio and reach your Time freedom Point.I'll be happy to discuss this in more detail with you.

Most banks will lend 75% of the purchase and if you get supplemental financing, like a seller carry back, they will reduce the amount they lend to you.