For rentals, focus on cash flow and metrics like cap rate (target 8%-10%) or cash-on-cash return.

Does the rental income and appreciation potential still make sense?

You'll find that rental property investing isn't scary at all and a great property manager can actually save you more money than they will cost!

Don't grill me too hard.I own three rental properties, one is my primary residence with an apartment (5 units total between 3 properties: 1 airbnb, 2 medium term healthcare leases, and 2 long-term rentals).

I went through someone else last year which has all of my previous rental property information on it and nothing has changed except now I have a child.

Living in one unit and renting out the others allows you to deduct 75% of expenses like mortgage interest, property taxes, insurance, and shared repairs as rental expenses, while the remaining 25% applies to personal use.

The Rise of Co-Living: As Airbnb Faces Restrictions, New Housing Models Win in Court 🏡⚖️Across the country, cities are tightening regulations on Airbnb and short-term rentals, making it harder for property owners to operate legally.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

Verifying last 2 years of rental history very important!

In addition, you want a separate bank account for the rental property to separate it from your personal accounts.