We’re based in Colorado, and hot tubs typically add around $10K in annual revenue.

The company and others that he runs own nearly 100 properties across the city’s low-income neighborhoods, records show.

Debt to Income Ratio will be used for more conventional types of financing (Fannie/Freddie).

LLC Taxation for FlippingSince you’re flipping the property in under 12 months, the IRS usually treats it as ordinary income because it’s considered a business activity, not a long-term investment.

An IRA would pay a small tax on such unrelated debt-financed income.

Gross income/rents * 11 rent multiplier = Total value.

.- You can even recycle the messages annually or quarterly!

Your debt to income will be calculated per conventional guidelines and if you qualify with both your current mortgage and the new mortgage plus all the rest of your debt you are good.

You still claim the income as miscellaneous income and deduct property taxes and mortgage interest (subject to SALT and other high mortgage limitations) on your Schedule A, but that's it.2. 

They'd be much better off being a Hard Money Lender and make 5 times that (and every repair to their "investment house" is paid by them...So, if you put $10k down on a property and make $150/month net cash flow your Coc Return (annualized) is 18% which is Very Good.If you followed that and understand it then keep looking for a deal.