@Paul Caputo good point, abandonment studies are often not done at all as they fly under the radar a bit as compared to cost segs.

It's not cheap, but it looks relatively cheap compared to stuff in Culver City, Westchester areas and of course way cheaper than a place like Venice Beach.

I like to think I run fairly conservative estimates (at least compared to the projections we use where I work).

However I do plan on living in the property temporarily so if I use traditional financing I can get into the property for as little as 3% down ($2400 compared to $40,000) with the current interest rates at around 4.75% for 30 years.

@Yer Xiongkansas City is much better for cash flow compared to sacramento.

The more information is that the 7 year ARM can get rates as low as traditional financing (almost) and won't require reserve funds for other loans.

@Hae Sun YiThe whole city of Chicago is hard to compare directly to a town like Naperville as far as rent values, property values and taxes because the city of Chicago is so large and diverse one neighborhood compared to another is really like comparing Naperville to another suburban town. 

However, even though I have $50k to invest right now, I would prefer to go the traditional lending route for the first few which would require another FT job. 

I've done flips and traditional rentals, but just starting to dip my toe in the water of STRI have a traditional retail in the Hutto/Round Rock area that I'm thinking about turning into an AirBnB.

DTI is calculated by comparing what you currently earn to what your monthly recurring expenses are, plus your future expected housing payment.