Are you looking for cash-flow?

The most important rule is to have the cash flow of the new property be able to pay all its expenses, mortgage, AND the line of credit back.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

Is this purchase on the MLS or through a turnkey company? 

Are you cash flowing the property?

$400k equity is producing $1600/month cash flow for a return from the cash flow of 4.8%.  

Occasionally through binoculars you may catch a glimpse of someone sitting on a porch, sipping a glass of mint julep, holding the glass with a white gloved hand with the pinky finger sticking up.

It’s cash flowing about $50/month after everything (PITI, flood insurance, home warranty, excess liability & termite protection) - if I got ride of termite it would cash flow $125.

If you lose your source of primary income, do you have enough cash to make it through the crisis? 

If your priority is cash flow, then you need to look at markets that support that.