Can you explain more about why people misunderstand initial cash flow?

Misunderstandings are not good. 

Message me if you would like some more information or I am not misunderstanding your question! 

It is very helpful.As for the tenant misunderstanding piece, I think a bit of education could go a long way in introducing how heat pumps work and how to minimize energy costs, so I don't see that as a non-starter.

Thanks for your insight Your title is asking about self employment but the body is asking about rental income. so sorry if I am misunderstanding but here is the form that an underwriter will use to calculate your rental income:  https://content.enactmi.com/documents/calculators/Form1038.C...Those items you mention deprecation, interest, HOA dues are always added back along with taxes and insurance.  

There is a terrible misunderstanding regarding initial cashflow vs long term cashflow and initial cashflow and over ROI. 

I was just checking on the zoning for Melbourne Beach and it looks like pretty much anything that is zoned for housing is allowed to be used as a STR... is that your understanding, or I am I misunderstanding that? 

I was not tryign to throw you under the bus at all with the misunderstanding I was more apologizing for my own interpretation of her experience.

LOL i think there's double misunderstanding here....I'm saying because of (my understanding of cap rate/appreciation) then my next generation would not need to pay mortgage at all because all my ex-primary in bay area has DSCR greater than 1.0 ; btw I donot know that it's possible to have lease from the adult working kid too LOL.yes passive active can only exceed passive income but you could always do infinite loop to not generate tax:purchase->rehab->rent_it_likeMF/househack->HELOC->buy another primary....basically I copy paste strategy of value_add MF GP but into your own primary.

Now, it's probably a mix of my bad math, bad deals, and my misunderstanding of financing--because surely some properties must have positive cashflow from day 1, right?