Balance debt and cash to preserve flexibility and scale efficiently.This post does not create a CPA-Client relationship.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

Multi-family properties many times provide a better return per square foot than single family, which would be to your advantage as well.As long as you're mindful of the reinvestment requirements and purchase at least as much as you sold and use all of the proceeds, you shouldn't have any issues with this strategy.

With Chicago's new Express Permit Program, it's a bit easier to get permits for work that would have previously required architectural drawings. 

Of course it is always a balance between rate and occupancy.I probably will never do it , but often dreamed at one time about buying a small hotel. 

You should not get a PM until you have scaled to a level that requires it.

It is also important to consider the transactional fees associated with originating the HELOC, whether an appraisal is required etc.

His name is Dalton Godson with Nexa Mortgage and we're using a UWM product.If you’ve found a lender willing to work with smaller loan amounts, what were their requirements and rates like?

I have focused my research on house hacking due to the lower upfront capital requirements with an FHA loan.

This isn't always the case, but in general, I've found Section 8 homes tend to require more frequent minor repairs.