I have a good W2 income and have some capital to use.

This is why it’s important to account for capex in your underwriting so you get a realistic view of cash flow/income.

It will be a new asset with little to no cap ex, and lower expenses.With an apartment, if you buy an existing building, you will cash flow day one, but there are other concerns, such as age, property management, debt, exit strategy.It depends upon your goals with the money, if you're trying to create income, or if you're trying to go into the business full time.Gino

These are also income based loan so the debt to income (DTI) ratio has to work. 

Only a few months and the turned is just going to be some basic cleaning, or has he been in there for quite a while and you're going to have to do a full turn and that may take you how ever long turns take you (lost rental income)?

. - Unused debt does not impact your debt to income ratio. 

Net rental income has almost completely replaced what we used to make in our jobs.

My plan is to hold onto it as a rental property, targeting Section 8 tenants, as the rental income is quite attractive at nearly $1,500 per month.Here's the challenge: The property's purchase price and labor is below $40,000, and I'm uncertain about my ability to secure a traditional mortgage for a property at this price point.

Hoping to find class c houses to eventually reach a higher monthly income from all the rentals.

Is this a perpetual income play?