This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

Interest income is interest income, unless you decided to roll some of the current cash into a self directed IRA at which point your interest income would be deferred for a later time and allow your funds to grow tax free.

That’s $900 per year in earnings.  

Hi All,
I own investment properties in Virginia Beach and Hampton Virginia.  Two years ago I started a maid company in Hampton Road Virginia.  While I have grown my client base to a respectable number, I've struggled...

If you spend time learning how to manage well, your income will increase, you'll save time, and you'll maintain your sanity with the courage to expand.

So that with paying my investor 6.3%, they will get a passive income of $2,532 every month ($30,384 every year).

Larger brokerages sometimes are in need of administrative work, which could earn you a steady income while also getting exposure to the field. 

Best of luck to all you out there.How much did you pay for these 3 buildings initially and how many years did it take you to earn the money to pay for them?  

Quote from @Diyan Yap: Have you thought about AirBnB, they can visit/stay with you while they rent it and earn income. 

Sterling,Each lender is different on how they calculate income and also what overlays they have that can cause a bad income calc.