In this specific case, limiting rent increases will reduce future cash flow and decrease the value of investment property.

Allow them to take the lion’s share of the profit but you’ll make a little cash to roll to your next deal and you’ll get the experience of working through a deal while also decreasing your risk.

I actually need to decrease my income for tax purposes.

The payments for a partner/private lender over 3 years will be MUCH higher and decrease your flexibility if you find another property to invest in.As far as banks, shop around and make a new post on BP specifically asking for banks that do what you are looking for in your area (or Kansas City which is big and has lots of BP members).

Here is something I found on a home guide website...Landlord CoverageMortgage lenders want evidence that the borrower has sufficient coverage (at least equal to the mortgage loan amount) that protects the property itself against fire, wind, water damage or other named hazards that might decrease the value of the real estate.

Would you be decreasing your interest rate as well? 

I was unaware of reality of this prior to purchasing the vr, I thought it would be more passive (because I was using a management company).....but I learned quickly it was a business (I was always thinking how to increase income, decrease expenses, reposition, etc.).

I thought it would be more passive (because I was using a management company).....but I learned quickly it was a business (I was always thinking how to increase income, decrease expenses, reposition, etc.).

3/5/2019Sherelle – thanks for the post / questions and outline Fyi – there are some conventional loan programs that allow a 3% down payment ….I would recommend using this program versus a fha loan program if possible …this is because with a FHA loan the monthly mortgage insurance remains with the loan permanently and with a conventional loan – you should be able to eliminate the mortgage insurance in the future ……Also – if you use a FHA loan for the first home - using a FHA again for next property might be an issue …..you allude to this in your question #2Regarding cash flow analysis ….other items to factor in : utilities / property homeowners insurance ( this will be a little higher when you live in home and should decrease a bit once you convert it to a rental policy / are there any deferred maintenance issues on the house ( roof / furnace / water heater / foundation are the bigger tickets items to watch Definitely get pre approved so you know for certain what you can afford and also so you can begin becoming more familiar with the numbers …we can assist with this if you want - contact us Thanks and I hope this helps Dave Skow 

Replacing the HVAC & water heater only increase the value if the old ones were decreasing the property value.