Hello Bigger Pockets community!

Hi, I am new to bigger pockets.

@Nicholas Foy average sales price in The Eye was $87,944 in 2023.We consider it a Class C- Nieghborhood.So, tenants will probably have FICO scores under 580.Means you may want to use a Vacancy/Tenant nonPerformance factor of 20%+ in your metricsYou'll also need a real good team on the ground to minimize losses.

Not to mention the loss of income for 8 months, shutting down the business and many other trickling down financial problems because of it.  

My journey started 3 weeks ago when I came across the bigger pockets.

I'm new to Bigger Pockets and have been immersing myself in the podcast and studying various aspects of real estate investing—from market analysis to financing—for the past two months.

It was enough time to put together an overnight bag with a few essentials, and Torres told the woman she could come back for bigger items later.

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.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Jefriah Welcome to Bigger Pockets and I wish you all the best in your investing journey!!

On tax benefits, last year we had a tax loss on our MTR business that lowered our personal taxes by an amount equal to 20.8% of our MTR gross rental income.