The lender will analyze all of this with the business operation and will not look into your personal credit side.

Operating expenses include all the expenses that are associated with operating your rental business, but DO NOT include the mortgage payment (Principal and Interest).

With the real world operating expenses, you will have big negative cash flow.

No one told him he was operating illegally.

Most agents work under a broker and the broker gets to set the rules that every agent who operates under them must follow.

(The more expenses the tenant pays, the lower the rent must be, so the landlord’s operating-expense ratio stays the same.)

The current owners operated their computer business there for several years.They are not interested in the real estate or any potential leasing so the marketing of the building is sub-par at best.

.------------$49,208 Net Operating Income$49,208 @ 8% Cap Rate = $615,100$49,208 @10% Cap Rate = $490,208$49,208 @12% Cap Rate = $410,066The numbers could slightly be skewed by higher/lower vacancy factor (5% is the lowest I would ever use).

I am currently living in the 4th bedroom as an onsite property manager in lieu of income (and of course, dividends and guaranteed payment).For the final four months of this year, I am currently generating $1025 in gross rent, with operating income (gross minus utilities and taxes) holding steady in the 60 to 75 percent range.

Also weigh license verses purchase...I like owning mine.Trust Accounts. you most have one along with a general operating account.Fair Housing.