I have even seen it in selling businesses. 

I want enough money coming in so the business can sustain itself when issues occur with maintenance or vacancy.If you wanted to do this with only 20% down ($46,000), which is all you need for a conventional loan, here is how the calculations change.Total mortgage + escrow $1,493.33 per month with cashflow reduced to $306.67 per month.I prefer to overestimate purchase price, interest rates, and homeowners’ insurance to be conservative.

I have REPS by actively and materially participating in my rental property portfolio, and also work as a real estate broker full time (1099 collecting commissions through a single member/purpose LLC) from buildings I sell.My losses from my rental properties (LLC #A) largely offset any federal and state taxes from my brokerage business (LLC #B).

Cincinnati and Birmingham tied for second place with a decline of 0.2%.The decline bucked a national trend where rents increased in 47 of the 50 largest metro areas in January compared to the same month last year, according to Zillow.The typical January rent in the Denver region was $1,918, a 0.8% decrease from January 2024.Multifamily rents experienced a larger decline than single-family rental properties, with Denver once again recording the largest drop in the nation at 0.5% in January, tying with Cincinnati.Read the rest of this story at the Denver Business Journal.

My biggest piece of advice is to run it like a business especially with the tenant next door.

You can’t just be busy—you have to be productive.

Purchase price: $325,000 Cash invested: $80,000 Good sized three family property with small lot on fairly busy main road.

This is not a debate, I haven't been in the business 30 years, but 10+ along with thousands of investor policies as well.

This bodes well for long-term equity growth.Rising Rents: The uptick in rental prices shows a strong demand for rental properties and could lead to better cash flow for investors.Economic Strength: Reading has a diverse economy, with key sectors like manufacturing, healthcare, and education providing stability.Rental Demand: Low vacancy rates signal that people are actively renting in the area, which is essential for scalability.Future Development: Any upcoming infrastructure projects or new businesses could further boost the market.With these positive trends, it seems like Reading could be a scalable rental market.

However, I believe this life-changing turn has been a blessing in disguise.In 2022, I had the opportunity to work with a skilled entrepreneur and together, we grew multiple businesses in Excavation, General Contracting, Inground Pool Installations, and Real Estate.