A great tenant to me is one that can afford the rent first.Keep this in mind, if you start now letting your tenant dictate the rent, you will have set a president that they can make decisions about your rental property. 

You still need to have a good idea of what other management companies or owners are doing because you don't want to be the only one paying for water and electricity or vice verse.

That's why lenders tend to focus on debt to income vice debt to assets (net worth really).

Anyway, this year we did a couple of projects for a guy who is the son-in-law of the president of oakwood homes.

If your cash in pocket is $54k at the end of the year and if you only had $240k in the property (20% of stated current value of $1.2M) vice the full $1.2M, your cash on cash would be 22.5%!!!

If you pick up a shovel and go dig ditches for clients as the sole employee you are 100% of the business.If you grow that business into a company of 100 ditch diggers, 3 crew leaders, 1 salesman, 2 office staff, and a CEO or president, you've removed yourself from the daily operations of the business.Like many concepts, reality and concepts don't always meet.

As a matter of fact he is a President of Long Island Board of Realtors.

Vice-versa, I don't let other wholesalers market my deals because I know my deals will sell.

I would much rather be the bigger vehicle getting hit by the smaller vehicle than vice versa.

Amy,I have run into HELOCs that require a minimum payment of say 2% of the outstanding balance vice just an interest only payment, but make sure you are getting a quote for a Home Equity Line Of Credit (HELOC) and not a Home Equity Loan.