When you sign almost all mortgage closing packages, you are signing an Occupancy Clause that states you are intending to live in the home for 12 months.  

Purchase price: $320,000 Currently have a long term renter, the rent pays the mortgage and other expenses but provides no cash flow.

You can find cheaper options on some other stuff, but I hope this gives you some Insite as to what money can buy these days. 

If you did not do a "wrap mortgage" or "mirror mortgage" to help them create "notes receivable income", they may need a cosigner to have enough income to qualify for their next mortgage.

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. 

.- Someone talked about crime and hard tenants (who don't pay - usually inherited ones)- not many economic opportunities to attract pool of people and boost area etcI'm looking at houses on both sides (Canada and USA) US, they are cheaper like 731 Pine Ave, Niagara FAlls NY 14301 going for $270,000 (5/2, 2700sq ft) but on Can side, it's like houses are in the US$400K - smaller sq ft.

Net Income post-mortgage: $75K/year.

So can I calculate my cash on cash return like below $40K(appreciation)/($42k(Down payment)+(2.1K(Monthly payment for Mortgage+HOA)*36)) = 40/(42+75.6)= 34% so the annual cash on cash return is about 1.34 to find the cubit root.

The properties in OK, which are roughly 30-40% smaller than my personal residence are only about $400-$600 cheaper than my FL insurance.

Our big cost is the mortgage interest, which is 8.3% on approximately $360,000, last year our mortgage interest was about $25,000.