But wouldn't this help your debt to income ration considerably?

allow me to rationalize for just a sec:1.

You should also have the security deposits moved over to you along with the rent pro-ration you are entitled to.

You have only included 2 of the operating expenses and the mortgage payment.If you post the gross rents and your mortgage payment (P&I), we can evaluate this deal and give you a rational answer.Splinterlife, To take advantage of the capital gains exemption, you must live in the property for 2 of the last 5 years.Mike

Almost makes you wonder if he was a drug addict, because his actions sound almost implausible to a rational person.

Originally posted by "Rehab702": On the down side if you buy a house for the purpose of renting it you will still have a negative cash flow as the rent to price ration is still only about 0.6%, this means that a $250,000 house will rent for about $1500. 8)Are there any locations in the west coast that gives you positive cash flow in renting?

Those have a much better price/rent ration.

Only presenting the rational behind my willingness to get involved with low income properties so that others(reading this thread after your comment) that may not have the capital that possibly you had to start with, or don't feel comfortable with too much leverage can have food for thought from the other side of the coin.

The seller won't always be rational, but you don't need every deal to work, either.

I know other family members who work a regular JOB.Their mindset is put money in savings in case of a medical illness or rainy day fund.Take 1 or 2 trips a year with vacation and that's all they aspire to be.They look at me and what I do and think "I am lucky" or "I have it good" that I have my own business.They think I sit at home in my office all day and do nothing.They do not realize I am putting in way more hours than they could imagine.I am sacrificing now so that down the road as I get older (36 now) I can take it more easy.Meanwhile many of these (savers) will be working as a greeter at Wal-mart at age 70 and complaining about social security not being enough.I am not going to be one of those statistics.A family member that is 68 has their house paid off,car paid off,and with social security still lives hand to mouth.I try to explain they need to grow that money to stay solvent but FEAR is what grips them from making a move.Whatever everyone believes we know we are born and in a certain amount of time we die.Where we go after that is up to each person to decide.So you do not have time to let FEAR keep you from making rational decisions and not living life.There is risk in everything.Successful people taker calculated risks and on average win more times than they lose.I guess I would be 4 and 5 since I have my own money but also buy property using owner financed deals.