I'd run away.Figuring 50% expenses, his $4,000 of income equates to $2,000 to service debt and have cash flow.

Because I recently bought my first multifamily about a year ago, my debt-to-income ratio is still high to obtain a another mortgage loan, the equity in the property is not there yet, and I still don't have two years worth of rental income to use towards extra income.

It was 2006, and about a year before my wife and I had finished paying off some fairly large debts I'd inherited from my previous marriage.

As you know, this will "cancel" the debt service in the lender's eyes and allow to re-borrow. 3.

Scoping out neighborhoods is a survival tactic for me.Physical signs that I look for -* Dumpsters* Contractors coming and going* Elimination of poverty industry (Check cashing places, title pawns, pawn shops) in favor of more bohemian establishments (Coffee shops, box stores, cafes, etc.)* Clean-up and neighborhoods taking care of themselves.

I could do that with my own Heloc which I already have.The mortgage amount is modest, $425 a month, and a portion of the loan will go to pay off all of her credit card debt with very high interest which almost equals the monthly mortgage payment.

I quickly found out that even a little debt can eat large chucks of profit because over time the 50% rule is absolutely true.

Debt Free - Debt is a tool if used right. 8.

Listed below is a summary of my financial and credit profile: Income/Savings:94K annual income (58K from primary employer + 36K combined from part-time work)20K in savings and have an additional 20K towards a downpaymentCredit scores: TransUnion 649, Experian 665, and Equifax 637 as of 12/10/11; credit simulator claims that my scores should jump ~20 points if I pay off my credit card balancesDebt:About 3K in credit card debt; all currentAbout 380K in student loan debt (majority from medical school); but all student loans are current and in deferment.

Well I could have gotten my own policy but then there is double the money and debt service involved which reduces margins.I was added as an additional insured because the insurance company employee said it would not cause any issues and then the insurance owner 4 weeks after closing gets all up in arms.The existing policy is much cheaper than the rates I found.The building is 30 years old and once it hits 30 other carriers told me unless it has new electrical,plumbing,roof,etc. they can't insurance it for the best rate anymore.Her in place policy was originally written 10 years ago when the building was only 20 years old.Kind of like an existing lender will do much more for you than a new lender where it has to meet their parameters.I asked about getting a policy for myself and adding her but the underlying mortgage would want her as primary so that wouldn't do anything.I am thinking I can make her part of the corp I have set up for that property with a non-controlling interest.The underlying lender could be told it was for estate planning and asset protection if any questions arose.The insurance company guy says that mortgage companies sometimes do periodic checks on title transfers to check for wrap deals but I think that is being a little paranoid.