This is certainly text book and absolutely the proper way to analyze a deal.Im not sure what he owes on the home but based on the payment and the year it was bought and the fact that its 20 min from Austin im just going to throw out 500K for conversations sake.500K compounding annually at 3% for 5 years comes out to approx $578,000, and you have the loan paydown aspect as well obviously. 

You don't know what a good property is because you are basing it off metrics from a couple of years ago or the one percent rule.

They shouldn't be allowed to issue Rules that clearly state one thing, then issue violations based on another, without explanation. 

I might also suggest that you use a chat application based on IRC.

I like @Christopher Phillips idea- surely a local bank would extend a line of credit to you based on the equity.

This is why many people buy real estate within an entity (LLC) and only buy 1 property per LLC or a few based on their value/equity. 

View report*This link comes directly from our calculators, based on information input by the member who posted.

View report*This link comes directly from our calculators, based on information input by the member who posted.Hey everyone, 25 year old Orthopedic Surgery PA in Staten Island, NY, looking to garner my first investment in the world of real estate.

You may be able to do a stand alone DSCR based second mortgage.

It is hard to guess without seeing the issue, but by a wide margin the best stain blocker is shellac based Zinsser BIN.