For example, I have been informed from a couple of banks that even though my current Airbnb totally offsets the mortgage, they will not take the income from the property towards the DTI calculations but rather take the gross income from the Taxes filed and consider the mortgage amount as an expense, which was hard to understand.

Best thing to do which most of them do not do is have a conversation about your goals and current income and assets.Getting your credit pulled 3-5 times can just hurt you in the long run if the lender has limited programs or extreme overlays.

https://www.ewg.org/news-insights/news-release/2024/03/over-240-california-community-organizations-unite-againstLate in the legislative process the tax was slipped into a 2022 law, A.B. 205, authorizing the California Public Utilities Commission, or CPUC, to add a fixed charge to electricity bills based on household income.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $800,000

Cash invested: $400,000

Home I rent to a family of five

Hi @Jamie Parker I was looking for passive income and the property was newly renovated so it seem easier to acquire with little to no work needed for tenants to move in immediately. 

Here's my situation:Debts$127K loan @ 16.99% for an investment property rehab - $1963/months fixed$50K Heloc against primary obtained when rates were low and has since adjusted to market (high) rate $36K (three business credit cards at diff rates, lowest at 22% apr)IncomeMortgage 1 income after expenses (primary carrying the heloc -) - $600/monthMortgage 2 income (also primary) - $ 162/month ( not enough equity in this to sell right away ($70k) but area is growing like crazy)Mortgage 3 income (investment) - $720/monthMortgage 4 income (this is the property the127k loan was taken against) - $856/month - This is the one i am considering selling.

Because if all you have is insurance and someone gets a really good lawyer, they can max out all your insurance and then go after properties, income, etc.

@Wayne Brooks I thought all rental income is considered a passive income?

I have questions: was the padsplit net income worth the time management and effort?

If a tenant is regularly late on payments, there is a very high probability that they will eventually stop paying or violate the lease in other ways that cost you far more than the late fees you see as "extra income."