I have been trying to educate myself on taxes recently because it is part of the real estate equation that I still struggle with when I am analyzing deals. I am currently buying in Rockford, IL and there are two four ...

I know debt to income is going to play a large factor in getting approved so was wondering if the lender will count the future rental income into that calculation to make the DTI better, since there is a lease in place.

Hey @Tony BealEven with tenants in place, you should still factor vacancy into your analysis.

Hey @Brandon ClarkWhat costs are you factoring into 'holding cost'?

But, if you are likely the only buyer/user in the market he knows another buyer will factor in these expenses. 

That's cashflow negative while you're living in it once you factor in repair reserves, which is exactly my point...it's not really possible to house hack a duplex and come out ahead on cashflow in most markets.

But, the one factor that is missing from the numbers is the risk involved when using leverage.

With the 35 day model, there are a variety of factors that come into play.

Mind changer is a factor, if you pay me 5 times to paint the same wall 5 times, just because you don't like the color, that's a no no for me.

Paying off debt may not be the best choice, depending on other factors like income, FICO, and credit/debt ratio.