Investment Info:

Small multi-family (2-4 units) buy & hold investment in Worcester.

Purchase price: $560,000

Cash invested: $150,000

Triple-decker Worcester property (3-family) with huge backyard...

The money made during the sale of a primary residence will not count towards your income from the bank's perspective because it is not recurring.

Search the forums for lots of discussion on the topic.But, to be succinct, imagine buying a $1M fourplex that generates $8500/m in gross income.Now, make a spreadsheet to figure out what each of the following could be:"Cash Flow" - The amount of money left in your bank account at the end of the month (ignoring reserves and non-recurring expenses)Free Cash Flow - The amount of money you can count on at the end of the year (allocating $ for reserves, vacancy, etc)Total Return - The amount that your net worth will increase by holding the investment (includes free cash flow + gains from paying down mortgage principal)Total Projected Return - The amount that your net worth will increase, based on market projections (includes projected gains/losses due to housing market price changes, development/value add for the property, or changes in CAP rate).IRR - Wrap it all up for the expected length of time you'll hold the property to see how it'll perform overall and to compare it to properties in other locales.Now, adjust all those for your personal tax situation to figure out whether it's a good investment for you.For San Diego, you should be able to look at different situations to see why it makes sense for some people to invest there.I haven't yet seen broad agreement on exactly what to call each of those terms *for REI* - there's a difference in terms that real estate finance pros use vs. how us mere mortals speak.  

Hi everyone I'm needing some advice! I'm closing on my first rental property on 8/30/2017. It wasn't the best deal by any means but it cash flows about $150 a month after mortgage, taxes, insurance, management (althou...

Doesn't allow for recurring payments to be setup on the tenants side but is pretty quick to transfer the money to your bank. 

If you look at the history of what property does in CA, (especially over 10-20 years) that should satisfy any anxiety.  

Mehran Kamari This is my first time hearing about a DTI ratio and just from quickly reading over some simple definitions of it I don't have much recurring monthly debt (less than $100) as I haven't graduated so I don't have to pay back any loans yet.

I also have a pretty major problem holding me back, and the my social anxiety.

Have you built into your numbers applicable utilities, recurring maintenance, management fee (even if you will self-manage), reserves for repairs and CapEx reserves?

We have tenants that always take advantage of the 5 day grace period we have in the lease. Today we received a text that they had an unexpected emergency and that they aren't sure they will be able to get the full ren...