@Tinia JamesIf you receive a 1099 showing income from one of your deals, you have to file a Schedule C to report that income.

Loan C: Capitalized interest reserve with an 80% LTC loan.

While on the topic, an S-corp will never save you anything on your rental properties, so don't place rentals into an S-corp.Form a C-corporation. 

@David C. is absolutely correct. 

Maybe the 600K property area goes from an A to B class area, while the 300K goes from C to B class? 

Out of town, especially in places that are tenant friendly or C/D areas, are for experienced investors only.

Remove those and the Net S8 Rent will be market rent.Typically, the only way to get more than market rent is by buying in Class D areas and hoping a S8 tenant will live there instead of a Class C area.Keep in Mind: TENANTS QUALIFY FOR SECTION 8 FOR A REASON!

Do not buy for appreciation in class C neighborhoodsAfter many conversations with successful investors and my own experience, successful investors focus on the following:1.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

A window A/C might keep it comfortable, but it often doesn’t meet the standard for counting it as fully finished square footage.