That being said you are in a great situation with the size of your income.

NOI, and thus cap rate, feeds into how much of a down payment is required b/c it feeds into the "sizing" of the loan.Many asset classes, like apartments and offices, have less than ideal in place cap rates today, so you need 35% or 50% down to buy them (unlike a DTI-based home loan, your personal W2 income cannot be used to significantly offset).

Specifically, do mid-sized to small towns outside of big cities have sufficient rental demand for rent by the room?

So this is my first time us a hml. what is the size of the loan?

If it's a good-sized outfit, they'll get a lawyer on the phone to tell you that they've done this a million times and they're certain to win.

Find out what his immediate cash needs are and see if you can take it over Sub 2 or see if he would be willing to seller finance a portion if not all of your put of pocket so you can get into the deal with no money down.

I may still have their rental data, if you'd like to see it.The size of your house will make a big difference on your success in Rocklin as well.

Our area is not unique, this is a nationwide issue (opportunity) for accounting firms.In the end I think many would be well served to think of their CPA/EA as they do an attorney - while they can also help provide planning advice to better structure your tax life and save some money, a portion of the cost is just a cost of doing business - you are required to be compliant by the Feds / states / etc, and the CPA/EA is insurance to ensure you get it right and stay out of their way.

And their roof loss settlement is "variable by roof age", not actual replacement cost, nor depreciation adjusted (most insurances will hold the depreciation portion of a claim till the repair is done and only then release the funds).Make sure you compare apples to apples when shopping around, pay attention to what they give you for "free", what deductibles apply and when exactly you can get coverage from the insurance and to what limits.

Every time you make a mortgage payment, a portion of it goes towards paying off the principal balance of your loan, which increases your equity in the property.