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.

Using this strategy allows you to decrease your cost of living and have someone else paying most, if not all of your mortgage, for a property they don't even own!

I've been holding onto my W-2 income simply for the allowance of getting a home loan and realize once I convert full time 1099 my chances of getting the loan decrease significantly.

However, beating the market cap generally means a value add that increases NOI via either an increase in revenues or a decrease in expenses. 

Do rates decrease when you are loyal to one insurer?

Sometimes you can buy something at a 6 cap fully stable with under market rents and increase rents and decrease costs to get an 8 or 8.5 cap etc.The syndicator you are planning on investing with needs to plan out exits and return of capital to the investors.I think a lot of stuff people are nuts paying those prices for things.

Cap rate = NOI/Purchase price Therefore,  if you can increase your NOI by either decreasing expenses or increasing revenue, your cap rate will go up.