The last of the most important criteria is that the sponsors interest be aligned, to the greatest extent possible, with the interests of the investors.  

Do your research and run some numbers, but if you can buy a 4br house, rent out the other three rooms and be left with a very small mortgage payment, you can start saving for the next one and then rinse and repeat every few years. 

For tax purposes, you really just need to have everything aligned to the schedule E categories. 

Also, at this time I had seen properties selling for 10 – 20% over ask regularly.Interest Rate 30 year conventional 7%Homeowners Insurance = $1,000 annuallyRents = $1,800 per monthWhen I looked at those assumptions, I would need to put down $80,000 on this house to get it to hit my cashflow goal of $500 minimum per month which equates to 35% down.Total mortgage + escrow = $1,267.13 per month with rents at $1,800 my monthly cashflow is $532.87.From my experience, after taking out vacancy and maintenance costs you are left with around 73% of that total cashflow number once the rental is established.People have asked why a $500 per month cashflow goal.

The strip of tape I left is covered in woodlice.

Figured there would be a few data points left out of the equation' that I would need to circle back with :) .There are additional units not rented at this time which could be rented to increase the income.

It’s surprising that fake reviews are allowed to remain unchecked on this platform.Question, If this post was a mistake, why is it left up to create confusion for potential investors?

Using a HELOC for the down payment on the second home might be an option, but lenders may require you to wait a few months post-closing on the multi-family before approving new loans.The BRRRR-style approach could work if you can renovate and refinance quickly, but make sure the timeline aligns with your lender’s requirements.

If they leave the document entirely untouched, you do not have engagement or alignment. 

Good luck trying to replicate that across multiple markets.If a market is working for you and aligns with your goals, why change it up?