Their net rental income for that year 6 (assuming 5% rental increases per year but increases in management fees, utilities, taxes, insurance) would be 24k.  

I want to utilize either a 2nd home type product or investment property product.

I have some land about to be under contract where I plan to clear it, reinstall the utilities, and either build on it or have a smaller new home built on it.

Reason for this is that our 40% partner who leads the group purchasing the property accepted a SUBORDINATED note for his interest in order to put the deal together.Bottom line is this, by utilizing a number of CREATIVE real estate principles, financing, deal making, etc. we have increased our wealth by anywhere from $235,000 to $635,000 over what we would have had accepting a cash sale.  

@John McKee, to be certain: IRR is a standard financial metric that is generally universally utilized.  

Typically DSCR is minimum 20-25% down, they will utilize a proportion of the current or proposed rental income to qualify.I'd have a second look at the income for full documentation qualification as well..there might be some other ways to qualify income..including asset depletion..

So far we have dumped 70K not including misc fees like insurance, utilities and other stuff. 

I am a USMC veteran so I have some flexibility with finance options and I am looking to utilize all resources I can to build and scale my portfolio.

Hi Rene, the programs that I often utilize for clients are capping cash-out refinances at 75% LTV and rate/term refinances at 80% LTV.

All utilities are within the area.