When I begin making payments, as most of you know, it will include principal & interest, taxes and insurance.Question:If I plan to move out of my duplex, would I notify my insurance company to convert my coverage from homeowners to rental property insurance?

And you are locked in with the extra annual payment even in times when your cash flow is suffering, such as during a prolonged vacancy or eviction.If you want to get faster pay down, just make an annual contribution to additional principal equal to one month's payment.

I want to encourage you to add the following book to your business library:The Richest Man in Babylon by George ClasonIt is short and sweet and gives some great financial principals for success.Happy New Year BP nation.Happy hunting!

Each year they can then lower the principal by gifting 14k each to you.

Memphis is also where one of our Founders and Principals, @Jeffrey King, lives almost full time, year around.Speaking in broad terms, the largest difference in product for us is we focus on the A-B+ Class Memphis neighborhoods, which would be the $90K - $180K price points and $900-$1595 rents per month.

Don't try to get screwy with creative note terms, agree to an interest on principal and the term of the loan.

My mother moved in and lived there for a few months then a tree fell on the house that she was going to be letting forclose and insurance paid for all of the repairs on it and the bank came back and took 40k off the principal and reduced her payments by 40% so she moved back into her original house.We then had this house that we purchased and had been remodeled sitting empty.

If you financed you have to reduce the return by the interest paid and then decide how you are going to look at the principal aspect of payments)Hope that helps. 

@Jason- the issue of how the DTI (debt to income) will be considered depends on if you are applying for a new loan during the year in which you purchase in which case you have not yet filed a tax return to claim the rental property will be 75% of gross rents evidenced by lease agreement and copy of the security deposit check minus the PITIA (principal interest taxes insurance assessments - per month).

We will not be listing on the MLS initially even though 3 of the principals (myself included) are licensed real estate agents.