Make sure that the monthly PITI payment is far enough below FMR that you can extract a reasonable ($300+) monthly cash flow, once all other expenses (vacancy, maintenance, management) are considered.For extra credit, see what it would cost to get flood insurance on the property.

@Mike Callahan - if you have so much equity in those houses, can't you get a portfolio loan to extract the equity and use it to pay down the other assets?

Is it my understanding that you could get a loan for up to $50K that could be used for most anything, and has a five year payback, but you can also extract larger amounts of funds for property purchase or hard money lending for example. 

But it sounds to me like you did not look at a rentroll or bank statements and other financial docs, which in reality would be more meaningful than tax returns.

If you put any meaningful leverage on a 1-4 unit in the current environment, the cash flow (if any) does not adequately compensate the investor for the risk. 

Also, are you doing a repositioning on the asset or are you simply purchasing to extract cashflow and ride with it as-is?

After extracting out a decent percentage of the $250K value add and thereby increasing your loan amount, your paper profits will be much less and you will have extracted the money to do the Repeat (another of the Rs). 

Any other examples would be great to learn about.Thank you Just various forms of depreciation (something suffering wear and tear over time) and depletion (the well in your back yard that has oil being extracted).

Our market has a high number of workers who work in our local industries (financial services / online Gaming mainly) and there is simply not enough housing available so a large number of them live on the other side of the border in Spain.My numbers currently look as follows:Monthly mortgage payment (70% LTV)  £1,114Monthly Rental Income £1,800Property CostsInsurance £20Maintenance £90Management £90Vacancy £90Rates/Charges £170Total Monthly Cost £460Property Cashflow £226On the face of it my return is very small for the amount of capital i could extract should i sell the property.

To my knowledge, the only meaningful exception is if your investment in the LLC is completely passive which will typically not be the case even in the case of a mere rental property.