A wonderful illustration on the velocity of money.

Let me use the following single family case study to illustrate: As is the case in most markets, the “C” or “D” tier neighborhoods tend to have the better cash flow on a single family home.

I pulled this example out of the IRS audit guide when reviewing a cost segregation.A simple example illustrates the tax benefits of a cost segregation study.

For illustration purposes, if the project cost is $100,000 and $25,000 would customarily be required as the downpayment, the equity amount becomes $31,000 in order to finance the additional $25,000 of project costs permitted by the lender.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

if someone says "I gross 50k rent per month", that isn't very meaningful without knowing what the net is (their net might be 45k, or they could be treading water and netting $0...or, they might even be cashflow negative; losing $2k/mo, etc.).re: paying off mortgages...assuming a property is performing well with a mortgage, and assuming that mortgage is locked at a low rate (esp. if it's lower than the current rates you could get on a new mortgage at a new property), then it often doesn't make much sense to pay off the mortgage yourself--especially if paying it off makes a minimal difference to cashflow.Here's an extreme example to illustrate that point:Let's say you have mortgage locked at 3%, and the property currently cashflows $500/month. ...and let's say there's $300k left on the mortgage, and paying off the mortgage would increase your cashflow by $100/mo...and let's also say that today's rates are 7%....paying that mortgage off wouldn't make much sense (you'd be paying 300k just to get 100/month more cashflow, and you'd be losing your low rate that you can't get again with a new mortgage, because rates are now higher). ...that $300k could be put to much better use elsewhere...On the other hand, if you had a property with only $2k left on the mortgage, and paying off the mortgage would increase your cashflow $500/month...then yeah, in that scenario it probably makes sense to pay $2k to increase your cashflow $500/month (even if it means losing your low rate).So yes--theoretically, in some scenarios, it CAN make sense to pay off the mortgage.

If you're interested in learning more please PM me and I can even run some illustrations for you so that we can see what your investments may be capable of.One final thing that I have to mention is if this is a route you're considering, you HAVE to keep the policy in force for your entire life because if you don't or if you do cash out the policy, then you WILL receive the tax bill.

With that said, I have yet to see a show that illustrates how to make the most profit on any given deal as an investor, topics could includeAnalyzing the deal and identifying the most profitable exit strategy,Creating the most profitable design drawings for the price point with tricks to adding more value, creating more space within the space together with all the nuances (Engineering, Specs, Permits) required for permits and construction.Now it won't matter how much money you build on the front because the contractors will suck it all out on the backend without effective project management, for example:Where to find contractors and how to solicit, cultivate, and manage. 

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

This criteria is for 1-4 and 5-8 unit programs.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.