In addition to answers:-- Income is when you consider money received as revenue-- Deposits received should be considered as a Other Current Liability-- Money paid out could be Expenses, Cost of Goods Sold, Fixed Asset, Other Asset, Other Current Asset, Other Current Liability, Long Term Liability or an Equity AccountIt all depends why you paid money, does it increase the value of your property, return a debt or .....Gita Faust

.$125,000/$1,125,000 = 11.1% Cap RateCap Rate is a useful formula to know when looking at commercial/rental property; however, it doesn’t take into consideration the debt, the cost of the debt or cash flow.

Essentially, the debtor gives you the right to appear on their behalf in court and obtain a judgment without a trial, in case of nonpayment.

You are acquiring a replacement property for $200K, rolling in all your net sale proceeds from the relinquished property and adding another $50K in new debt (or cash) to complete the acquisition.  

If Lessee defaults in the payment of any payment due under the terms of this Agreement, or defaults in any other obligation contained herein, or if such property or any part thereof is seized or levied upon or attempted to be seized or levied upon under any legal process issued against Lessee, or if a debtor's relief proceeding or a bankruptcy, receivership, or insolvency shall be instituted or filed by or against Lessee, or if Lessee shall enter into any arrangement or composition with creditors, this will be considered a breach of this Lease Agreement, which shall automatically terminate it.

Any asset or liability of the debtor has to be declared and then the trustee follows the money.

Hey Bailey, it sounds like you found an entrepreneurial gig to generate cash which is awesome for a younger guy, particularly as your peers are heaping on graduate degree debt or starting the cubicle grind.In this community what I believe will impress others most is the two properties you personally own and turned into STRs.

We have moved far away from debtors prison.If you bought a high risk property in NY, you can cash flow like crazy if ALL goes well, or you can end up understanding the risk side of high risk.

your talking folks in a completely different league than those that need debt or to sub too  to acquire their homes..

You'll have 3-5 properties with significantly less debt or no debt, that's something 99% of the world wishes to achieve.