With conventional the more you put down closer to the 20% number the insurance charge is less and less as risk decreases for the lender.So if you put 5% down for conventional as homebuyer the rate is a little higher and the insurance payment is higher to compensate for risk.A mortgage broker or a direct bank will know all the minute details for your situation.

Good news is they add in any paperlosses like depreciation and any 1 time expenses such as a new roof, new kitchen, etc you can prove with organized receipts.Schedule E Calculation:Non-Subject Property:AddLine 3Line 12Line 18MinusLine 20Divide by 12 - mortgage payment = net incomeSubject Property:AddLine 3Line 9Line 12Line 16Line 18MinusLine 20Divide by 12 - PITI = net incomeIf you've had the property on 2 years of returns and the income is increasing they will average the 2 years if the income is decreasing they will use the most recent.

And taxes are not being adjusted based on the value decrease so you have flood insurance and the house is taxed as if the market value is the same.

Many believe we are in a mini-bubble and I'm convinced the market may remain strong or semi-strong (although appreciations will decrease in rate).If/When shadow inventory is finally released (eventually), it may not cause a "flood" to the market which I've heard over and over again.

I also understand that my cash flow may decrease to due pmi.

Additionally, homes spent an average of 51 days on the market, which is a decrease of 16 days from one year prior.The total dollar volume of single-family properties sold was $555,757,542 or 24 percent higher than the same month last year.

Because of this inability to ever get conventional financing on a five or six plex, the result of adding additional units can actually decrease the value of the property even if it increases the gross income.

I was looking at a retirement city that has 25% vacancy rate.Here is some other data:-population 21k-population growth 14% (since 2000)-median sales price 129k-year-over-year return -12%-quarter-over-quarter -14%-sales price 5 years ago 192k-2006 sales price 270K-median rent listed 1250$ (-22% change since a year ago)I like the fact that there's definitely room to grow (between 2006 price and current), however I am concerned about 25% vacancy rate and decreasing rents.

I want to be hands for the first only to get a better grasp on the whole process.Rent @ $700 is conservative.If 5k purchase--NOI 3840, 12% coc, beats 2% rule.If 10k purchase-only 10.3 cocPlan to pull the equity out after 6 mo, so the cash on cash will increase while the NOI decreases.

You will run into an issue of transferring the funds out of the S-corp if you basis is zero.Profits increase basis.Adding money increases basisTaking money out decreases basis.