*This post does not create a CPA-client relationship.

I created spreadsheet from previous remodels but every deal needs tweaked.

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.

I've created a walk-thru video for each unit and posted it online.

The reports you can create with Stessa, such as an Income Statement, Balance Sheet, etc, are similar to the kinds of reports accountants are used to working with since other finance/rental software also generate very similar types of reports.  

Yes, we’d have no mortgage payment, which is huge, but the ultimate goal was to create passive income and scale upwards so that I could eventually retire and spend time with my family.

But the numbers you just posted aren't far fetched, you just have to factor in everything that could go wrong and create a system to limit your risk

Part of me wants to turn down the application due to the concerns around this criminal history, the other side of it is it is a tough market currently and slow season ahead and insisting on rejecting the application would likely create serious rifts with my property managers (whom I have generally been fine with otherwise) as they are pushing back on rejecting due to criminal history from years ago.  

This post does not create a CPA-Client relationship.

It is one of the best examples of City Council and local registered community organizations huddling together to create restrictions intended to thwart development but here they are doing it in a manner which will leave new housing stock in the dust relative to other neighborhoods thanks to terrible design restrictions.