Principal Paydown:  Cash Flow:  Tax Benefits: Savings from depreciation and interest deductions.For a deal to make sense, at least three of these components—home appreciation, cash flow, and principal paydown—need to be strong.

You can find us online.Current Ideas: Video Series on Passive Investing in MHC, Tax Benefits of MHC, Investing through 401k etc. 

Overall, the tax benefits and appreciation alone keep me interested in staying with it more than the cash flow itself. 

Live-in-flip a four plex- live in one unit while you rent the others and benefit from the other 3 units paying a large chunk if not all of the mortgage.

Quote from @Amit Chugh: @Tim Delaney - I was referring that one of the properties is listed as Section 8 Property, why one would list that in title, does it make any different or benefit for buyer or seller mentioning section 8 in title?

The mortgage would stay under the seller's name.The buyer could then rent out the unit, renovate, etc. to increase cash flow or make more money.But aside from a possible "due on clause" being called by the mortgage company, what's the benefit to the seller?

When you pay cash for a $400,000 home and rent it out, your rate of return will likely be less than 6%.You could invest in stocks and earn 7% or better.You could put the money in a high-interest savings account and earn up to 5%.I don't understand why anyone would pay cash for real estate, erasing many benefits that increase the rate of return, while exposing themselves to the risk of loss (turnover costs, bad tenants, capex, etc.). 

Do honest math on a purchase and you'll see.The benefits of real estate are... all of them together. 

That self-sufficiency test is sometimes the killer on 3-4 units, but the conventional 5% down option has benefits too and that's how I got into my first multi-unit househack.  

A Heloc is an open end mortgage same as a credit card the only benefit is that you only pay on the amount you borrow.