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.

Whether you decide to rent your current home and move or buy an investment property to rent or flip, having the right financing strategy will be key to making sure your deals are profitable and sustainable.Here are a few loan options that might help based on your strategy:DSCR Loans (Debt Service Coverage Ratio) – If you're looking to buy a rental property, this could be a great option.

However, this is a difficult qualification to meet, especially if you have a full-time job outside of real estate.Don’t worry if you aren’t able to qualify for REPS status, because there is another strategy that is referred to as a “loophole”, which is the STR strategy.Per Section 1.469-1T(e)(3)(ii)(A): there are six exceptions where your rental property income is not automatically considered to be “rental activity” and thus may unlock the door for being able to offset these losses against your active income.The average customer use is seven days or less.The average customer use is 30 days or less and significant personal services were provided (for example, daily housekeeping).Extraordinary personal services are provided, regardless of the duration of customer use.The rental is incidental to a non-rental activity.The property is available during defined business hours for non-exclusive use by various customers.The property is used in an activity conducted by an S Corporation, partnership or joint venture in which the taxpayer holds an interest.If your property qualifies by meeting one of the exceptions above, the next step is to demonstrate material participation in the rental activity.

Contracting and subcontracting services, like plumbing, generally don’t count unless tied directly to real estate you own.Are you considering acquiring rental properties or engaging in real estate development where you would personally manage or oversee those properties?

There are obviously other metrics that have to be met, such as the gross monthly rent has to be equal to greater than the total principal, interest, taxes, and insurance; that is the debt service coverage ratio (DSCR).

I work in the social services field and have become aware of these types of places and am wanting to learn more about them from the investors perspective.  

Then fix them.There are services that will put the house on the MLS for $700.

Without a PM you can afford to pay top dollar for service professionals as needed.  

Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.3.

There are DSCR lenders that allow for Negative debt service, and in some instances no ratio.