Owning two less expensive homes for long-term rentals offers diversification and stable cash flow, but may also generate lower monthly cash flow and property quality issues.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Taxes and insurance will be the biggest variables on the expense side. 

I’ve seen investors spread too thin by picking up multiple inexpensive properties in less desirable neighborhoods, only to be hit with constant maintenance issues and tenant turnover.That said, there are still opportunities in the Midwest where you can find properties in stable, growing areas.

We have set up preferred venders with Lenders, Insurance, Property Management and we are Boots On The Ground.  

I also addressed their concerns about insurance options, as they expressed significant worries about that.

Then you can run your numbers, check insurance, cap ex, special assessments, and get inspections.

@Tejas ParuthooliI can answer your question by telling you a story at what points in my life I was developing the software and I asked my attorney if he could write terms of use his response was brilliant he said the best terms of use policy is that microsoft.com they have the largest law firm in the world at that point it was simply copy and paste.I can understand paying an attorney to drop your first LLC but after your first one it's copy and paste.With single family properties you could probably just have one LLC with your umbrella insurance.

The expenses of the mortgage, property taxes & insurance and HOA (if applicable would have to be at or below the number- in this example, $8,000).

We charge one month rent and one month security deposit before move in (make sure payments have cleared before turning over keys)  One month security is max allowable by Delaware Landlord Tenant code.If they have a pet you can charge a pet deposit (again, by state code, DE you can charge up to 1 month rent)If separately metered utilities, make sure they've transferred them into their name by providing account numbers and also a copy of their renter insurance before move in.Good luck!