That's correct.

Additionally, I’m not keen on HELOCs due to their variable interest rates, if I understand them correctly.

You’re correct that there’s a sense of immediacy in making the entire investment in a short period of time.

Correct.

If I recall correctly, I did have one tenant move out due to a reasonable rent increase.Now if the rents are already above AND tenants are good, the most you should be raising is 25 and might be better just to keep as it is.

@Lara White is correct. 

Be honest and follow the correct steps and you won't have any problems, unless the UW simply doesn't like it.Overall, the process is pretty standard, but if you don't follow the rules, you will have a heck of a time getting the conventional financing.Cheers!

Unless I did go wrong somewhere.Monthly cash flow: -$8,830The income: $2,500/moExpenses: $11,330CoC ROI: -129.48%5 Year annualized return: 0.00%Mortgage Payment: $3,015.49Loan Details: Total Cash Needed is $81,841I think I input everything correctly.

Sounds like you are self managing- correct?

Hello,I recently closed on a BFD deal and looking for direction on correctly setting up journal entries, to make it easy at tax time.In a nutshell...We hold a mortgage on the property with a principal of $150k, 4.25%, 30yr amort (liability)The BFD sale price was $300k, with a $45 downpayment, $255k financed at 5.5%, 25yr amort, 3yr balloon (asset).All transactions are run through an escrow agent, and we just collect the net difference monthly (~$325 or so).