@David Cherkowsky, the lender will take the full rental income reported on the tax return, for that property, subtract it from the total expenses, add back depreciation, property taxes, mortgage interest, home insurance, HOA(if applicable), sometimes repair expenses(must be documented), divide it by the total amount of months the property was in service for that year (THIS NUMBER IS ON YOUR TAX RETURNS, SO MAKE SURE YOUR ACCOUNTANT DOES NOT PUT 12 MONTHS), and subtracts it against your total monthly mortgage payment.

Insurance proceeds are typically provided in a check that must be endorsed by both the policy holder and the mortgage holder. 

@Blake Johnson If investors want to divide real estate holdings without triggering a large tax bill, the biggest challenge is that transferring assets out of a corporation is typically treated as a taxable sale at fair market value.

When I read your post, I thought you were talking about a HEPA filter which goes beyond the filtration typically used in a forced air HVAC system.

However, this also means walking away from future appreciation gains and potential rent increases.As for a HELOC on an investment property, yes, it’s possible, but terms are typically less favorable than primary residence HELOCs.

They will ALL try to up your rates, but you can usually mitigate the amount of the increase with a new 4-point and a call to your agent.If my carrier changes because my agent found a better deal, they typically want to come inspect. 

Thank you for your service.

In that case, your rental income may decrease as more workers transition to lower-paying service sector roles.

So let’s assume with realistic expense estimates over 1st 5 years you average $250 in today equivalent dollars (it will be a challenge at that starting point).The ADUs are typically receiving valuations below $100k, but let’s be generous to show the scope of the people and say it adds $150k of value. 

This requires 10% down and you typically just have to live in the property for 14 days out of the year.