This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

More issues arising with insurance, underwriting, appraisals, and more.

After experimenting with data, I achieved a 3.7% response rate from direct mail and am still receiving calls after 8 weeks.I’m not looking to sell anything; I genuinely want to understand more about effective marketing strategies before investing further in data and technology.

You could put your cash in a national (versus local) FDIC insured bank in a savings account and get on with it. 

We have aproperty where insurance went up 400% in one year. 

I'm looking into starting off into real estate investing with my partner and have been looking into the Milwaukee area with a buy and hold strategy in mind. 

If so... do you make the guest take rental insurance or something? 

When you are putting less than 20% down you have to escrow your taxes and insurance into the loan & payment.

Aggressive marketingWe currently have a fairly aggressive marketing strategy but there is always room for improvement.With the current NAR settlement, we will no longer be able to market commissions to agents on the MLS.

I have an estimate RCV from the insurance adjuster for $5200.