So your super basic P&L may look like: $30,000 Rents-$3,000 insurance expense -$9,000 interest-$3,000 taxes-$8,000 operating expenses-$14,000 depreciation ----------------$7,000 loss on paper for the year  so negative taxable income But remember- $14k of that (depreciation) was something we didn't actually spend money on- so cash in bank at year end would be $7,000. 

Instead of their cash sitting in a savings account, they decided it would be a better investment to earn 3% on their money instead of .03% in the bank.

Banks like proof the funds were in a bank well before closing. 

So you can bank the difference.

Should I talk to an appraiser before the bank gets an appraisal?

The work around was a Mexican bank was the owner and lease it to the foreigner.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

You should always talk to a mortgage broker or bank first to find how much you qualify for before starting the investor journey.

Quote from @Will Cruz: Does anyone know of a Bank that is willing to do a HELOC on an investment property?

Fast forward 20 years: I now have money in the bank, excellent credit, live modestly on my own, and run a business that’s doing well.Unfortunately, I wasn’t able to save much for retirement during most of my life.