- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

It's like putting your life into net negative before you are trending enough into financial positive.

My net rental income was $300 to $500 a month, not enough to cover the mortgage payment (PITI) so I'm negative on what was supposed to cash flow on paper.

In my opinion, you are going to find positives and negatives in EVERY MARKET and you will also find investors crushing it and getting crushed in every market.  

I wouldn't pick a random market far away based solely on statistics or numbers.

I believe San Diego is a great RE market but the reality is it is very competitive and most purchases have negative initial cash flow.  

Most that have negative feedback about the product are not educated about it.

They are the worst company to deal with ever.I then asked a few other real estate attorneys and their response was the same.The negative reviews shared are exactly what happened to me.In addition i have personally had over 100 loans in my lifetime.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

If the property breaks even, or operates in the red currently, it will only operate deeper in the negative (unless you find a strong ROI like creating more bedrooms, convert a non living space to living space, etc) with another loan.