However, appreciation will put more dollars in your pocket over the long run.The best solution is to find a property with positive cash flow in an appreciating market.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

A $240k loan amount on a $249k purchase price seems crazy and I'd never expect to produce any net positive cash flow doing this.How are you calculating your property taxes?

Something that is increasingly important to those clients is being cash flow positive from day 1 and this is what we deliver.

My first reaction to your post is if you're purchasing assets that are throwing off positive cash but your DTI is going up then it may be time to re-evaluate the type of assets or the expenses associated with those assets.  2.

Mostly people with minimal RE experience are adding a single ADU and they often make that choice based on cash flow without taking into account the negative equity position.  

Emphasize that your offer is competitive and you’re ready to move now, or set a reasonable deadline for the offer to ensure the seller knows you’re serious.Use Comparables StrategicallyHave data on hand to support your position.

The 1st position loan is paid off but has a second position heloc on the home with 50k balance.

There are a few programs that can do second position financing but typically underwritten based on your personal income.

The land loan is in 1st position on title which would put the loan to build in 2nd position.