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.

2) How many parties did the tenant throw that generated complaints?

Make sure you give them enough lead time to find another apartment.

If your focused on cashflow I would look into the following: These areas can generate good cash flow due to lower acquisition costs.

This can lead to a more productive conversation and help you refine your proposal

Your downpayment would be instant equity and your consistent cash flow would lead to equity over time.

This also leads owners to ASSUME simpler is better when it comes to management contracts.

At least I don't have to worry about generating any kind of ROI.

Here’s a rundown of my current situation:- Own an S-Corp (landscaping) generating 70k a year- 160k in available cash funds- Credit score around 720- Zero debt- Own one property valued at 365k, 30% equity- Property is rented by the room generating $400 a month after mortgage and taxes- Additional 590sqft house is being built in rear of property for 60k.

My goal is to wholesale until I can generate enough to start my rehabbing business.