If it’s in California they will chase you for state income tax if you ever sell your new property, even if you exchange out of state. 

Low income neighborhood, yes, huge returns, not really, but it was all cash; net for me was $10k.

We have a couple newer houses, and they are almost invisible, just a monthly income.

Hi, I am less than 10 years away from my retirement and I would like to build up my passive income to real estate to ensure that I have a steady stream of income after retirement.

Open to being a full-time agent for sure, but imagining that could take some time to replace my current income.

Indeed, the FAIR ordinance is anything but fair to non-corporate landlords, seemingly punished for investing in rental houses to generate income as an alternative to stocks and bonds.A handful of opportunists likely could learn to exploit these new rules, preying on otherwise law-abiding landlords to obtain legalized shake-down payments.

More on how DSCR programs work below:DSCR loans won't use your income to underwrite the loan. 

They know who their primary audience is, people who are broke, newly interested in real estate (maybe from tiktok), and want to get rich off of possible income without putting in the effort to make a bunch of money.

This structure simplifies management, centralizes ownership, and provides an extra layer of liability protection.Tax-wise, the state where each property is located will still require income tax reporting and LLC fees.

For something more robust, tools like Excel or online calculators from financial planning sites might better suit your needs.Your ROI Formula:ROI = (Net Cash Flow ÷ Total Out-of-Pocket Investment) × 100For your scenario:Net Cash Flow = Annual Rental Income - (Mortgage Payment + 401k Loan Payment + Other Expenses)Total Out-of-Pocket Investment = $40,000 cash + $50,000 loan payments over 5 years.I came across a piece in Bloomberg recently discussing creative financing, and they touched on ROI calculations for multiple loans.Personal anecdote: A buddy of mine leveraged a 401k loan for a fourplex.