I created the graphic below to illustrate the effect inflation has on (inflation adjusted) cash flow.

Without diving into illustrations and analysis I have found success with my owner occupied clients by drawing the line between utility/investment and profiling you as a buyer.

So, we implemented the process illustrated below.Once we have a property under contract, we send the client's preapproval and a property description to multiple lenders for their current interest rate buy-downs.

@Joe Villeneuve's examples illustrates the benefits of leverage.

[the utility rate I show was for illustration purposes only]Good luck...its a minefield out there.

I know they aren't for SC, but it helps illustrate what is and is not acceptable in a state that is currently cracking down.http://watsoninvested.com/wholesaling/-Christopher

the numbers i was given were probably exaggerated a bit for illustration.  

Therefore I'm happy to get less than a sky-high return.This is an illustration of the not-so-secret secret in real estate: create win-win outcomes and you'll do well.Finally, @Amy Gonzalez, feel free to message me if you want to tap more into my experience when it comes to investing in Mexico.

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 = $350Insurance = $100Association 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 = $250Insurance = $100Association Dues = $25Total PITIA = $1875Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23Lender terms and fees vary widely.

What I will do is give you an illustrative story, and maybe you can bring your knowledge up a little.Big Apartments LLC - a manager managed LLC with two members.Member #1 is You (Patrick), the Manager (and also a Member), you have put $500 into the LLC and own 50 Membership Units (a 50% owner).Member #2 is your brother in-law (lets call him Richard Smith) he is not the manager (although he could be a co-manager but is not because that's the way you two want it).Richard has also put $500 into the LLC and own 50 Membership Units (a 50% owner).You two guys are 50/50 owners of Big Apartments LLC, evidenced by your Membership Certificates (which look a little like old fashioned stock certificates but are not stock shares).The company has $1,000 in the kitty and since Richard won at Poker last night he's flush with cash, $1,000.You and Richard agree that he can lend the LLC $1,000 (that's in addition to his already put in $500).Since this is only a loan it does not effect his ownership percentage of the company.