Please note, based on the numbers provided you will not be cash flowing. 154k loan amount - 30Y fixed  4k in annual taxes & Insurance 7.75% Rate Monthly PITI Payment = $1,436.60Your estimated rental income is only 1k-1.4k per month.

Four units at $65 on MTM leases and two units are rented to the city housing authority at $700 with annual leases. 

maybe some of us older guys remember when RE only appreciated a few points a year at best.... all you young bucks think these huge annual appreciation numbers are the norm - they are "not" if you cant get an annual return better than that of a t-bill or CD - run .... 

You then file the annual report each year and continue to fork over another $500 annually.Next "cheapest" will be legal zoom or a similar service, I believe they'll help roll the registration with the state into the start up package.I use "cheapest" in quotes - the primary purpose of an LLC is typically to provide some level of asset protection. 

Of course, this depends on your unit blends... 3 beds are in HIGH demand.  4 beds are instant refills (and warrant annual rate increases).Hubbell CBRE puts out a rental report every year. 

.- thats  good to hear .....fyi - when checking the  caps on an ARM loan - there are  3  different caps to understand and  be aware of  :  1) the  intial  cap  is the amount the rate  can change on the  intial  adjustement - this is often 5 or 6% ...so if your rate was  intially 4% - this means the  rate  could  intially  change to 10% +  2) the  lifetime cap  is the  max  amount the  rate can  change over the loans life - this is  often the same as the  intial cap at  5 or 6%  3) the  3rd cap is the one you mention  which is the  period  cap ..this is the  most the  rate can  change  once the loan  begins to  adjsut    annually or  every  6 months ..this is  often  2% 

, my question is do you think an SF home located about 20 minutes from the RTP / RDU area appreciation will continue at a typical annualized 3% pace, and do you think rent will continue to increase OR do you think the influx of housing over time will keep home prices flat, and rent flat with it?

They need the insurance declaration pages (1-2 pages showing the annual premium and the insurance agency contact info), property tax bill, and mortgage statement. 

Wont LLC comes with additional annual tax filling complexity ? 

Quote from @Scott Wolf: Quote from @David Yarnes: Hey everyone!