Quote from @Ven Bud: After hearing to lot of bp episodes on negative cash flow, I have a question.I am currently living in my primary residence and planning to purchase an investment property, and obviously it is going to be a negative cashflow (bay area), but I am of the opinion that as long as the rent on the investment property is atleast going to be greater than my current primary residence mortgage it can still considered as positive cash flow investment.The investment property is going to be in a much better location (for office commute, bay area proximity) than my primary residence.

It's not a bad strategy, especially if you live in a lower-priced area with a good rent-to-purchase price ratio.

I haven't lived in it long enough to be exempt from capital gains, good point on that.

I live in a small town in eastern Arizona, about 7000 people, and we have a pretty serious shortage of rental properties.

Can you buy a duplex in Arkansas and live in one side just to get your feet wet and make sure you like the area?

@Marcus Stokescan you start with a live-in flip or house hack instead?

Rodrigues' recommendation may change this), but my next question would be, are there any cities/markets where 1 of the following are true: 1) You have family/friends that live there, 2) You travel there frequently (either for vacation, work, etc.), or 3) Somewhere else you've lived before AND know the area well?

A DSCR Loan requires the property to be in LIVABLE CONDITION.Does it mean YOU would live in it?

I informed them that their contract states they are expected to pay up until the end of the agreement regardless of living their or not. 

After 25 months, If they can prove that they lived in the property for two of the past five years, they can sell it as an owner-occupied residence.