.- Over a 10 year period cashflow will increase as rents increase (rents typically rise faster than property taxes, insurance, etc.)- The property should be appreciating, if purchased in a good location, increasing the owner's equity/wealth.- Rents will be paying the mortgage off, increasing the owner's equity/wealth.- If you hold a rental until death, you can pass it on with a stepped-up cost basis, limiting captial gains if then sold (limited by inheritance tax limitations).Too many newbies on this site trying to replace their day job income via "passive" real estate investing w/o digging deep enough to understand how it really works.

The only additional thing that needs to happen is make sure appraiser makes note of why the value increase in as is vs previous purchase price.

California owners, should we increase our coverage, which should result in higher premiums?  

The shorter the prepayment term has an impact on increasing the rate.4.

Cash-Out Refinance – Refinancing one of your properties to pull out $30,000 in cash can be an option, though it may extend your loan term or increase your interest rate. 3.

I recommend you do this annually to adjust for utility increases and other variables.

We’re looking to increase our lifestyle through the decrease in housing and built a little passive income medium term. 

My interest in entity transfers is the ability to forego a massive increase in the tax bill upon reassessment.

Many states have discounted property taxes and lower yearly increases for owner occupied properties.

I made the mistake of letting someone get in one of my first units that was a bit off the 3 times, they were great tenants very kind and enjoyed their stay and experience with me, but could not afford it when I increased the rent on them, which is something you will have to do because of rising insurance/tax costs.5.)