If there is no debt service probably 30% is still going of the rent is still going to operating expenses which means that you only made about 480k or so. 480k rents + 800k property is the same 1.3million roughly.

Most lenders require proof of someone else paying the note for around 9-12 months so that the debt isn't counted in their DTI calculation.

@Alec Barnes we use Debt-To-Income Ratio (DTI) instead of income = 3x rent.Reason?

Quote from @Hector Romero: Hello all, I am new to the community as well as being the lead in real estate investments.My sister and I currently hold 3 properties next to each other in Riverside County, California (we'd like to get them in an LLC but we're unsure how that may affect financing them).

Hi Jessica, I would suggest getting a propstream or any other lead generation account, finding cash buyers who bought similiar properties to yours in the last 3-6 months in the area of the properties you are looking to sell, skip trace then cold call or cold texting the list. 

This eliminates the problem of increasing your debt and damaging your credit score.

My occupancy rate is probably as good as anyone, and one thing I do is never have a high debt load then turn that around and award my tenants with rental rates they can't match elsewhere. 

All the leads I've found so far have balked at either the "investment property" requirement, the "in California" requirement (or both!)

We set up our CPA, LLC, website, marketing plat forms (social media), investor (sponsors) list, I have an operation manager, acquisition manager, and myself leading the charge.

Another common problem is poor due diligence—jumping into deals without verifying the borrower or collateral often leads to future regrets.I’ve also seen over-leveraged borrowers cause trouble, prioritizing other creditors over private lenders.