This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

@Edgar Perez, @Chad Nagel, @Anastasia Jordan the insurance for these types of properties is specialized. 

I would think you would need to prorate all the deductions such as taxes, insurance, depreciation, etc.  7.

I'm reviewing my rental property insurance after having gone through issues with the first ever claim on my current policy, which we're finding out has poor claims service and lacks ordinance or law coverage.

Hi guys,So I have some Insurance questions.

@Jamaal SmithWas the increase due to local tax increase in rates or due to valuationMost property taxes are increasing significantly as is insurance because of inflation - everything has gotten more expensiveYou can try and contest the assessment and see if it reduces taxes.

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

As it's me to me, I wouldn't need title search and title insurance and such.

For example… Home needs paint, flooring, has rusted plumbing in the bathroom and has termite damage.

We calculate gross income as all dollars coming in except taxes.Our clients gross revenue is the room rate (top line) expenses minused out and then they receive their net income.Net profit (or loss) would be then when they subtract debt service, property tax, insurance, utilities, etc.