This process may seem like spining your wheels when you want to put your REI career in gear but I see having a solid financial base as extremely important.

Lets consider a hypothetical 3/2, recent (<10 years old) SFH is about $80k.Lets assume, for the sake of argument, I pay this.Cost: $80,000Down: $16,000Closing: $2,000Rate: 5%Mortgage (incl Tax): $430Say I even go with a PM: $120/moInsurance: ~$500Rent: $1100 Gross income: $13,200Expenses: $7,100This looks like solid CF to me.But compared to the 2% rule, it seems borderline (1.3%)Doesn't meet the 1/3 rule.Not sure which end of the 50% rule PM fees are taken out of, but with Insurance CF from this metric is thin too.What am I missing?

Hi Ann Bellamy, thanks for the peeps.Daniel H, I have way too many questions to give you solid answer here but will shoot from the hip.Is this a tenant at will, or a tenant with a lease?

A solid building should make returns without necessitating a dp.

Keith J. glad you made a solid connection.

We're trying hard to build a strong brand over here in my neck of the woods.

Giving a refi to cash out some of your equity on your proven properties and giving a construction loan to build your other buildings you want are 2 very separate issues.If the ltv is right and the property is solid a bank would love to lend on your current buildings for the right ltv.A construction project on the other hand is not a type of loan many banks are giving right now at any ltv.What do you think was the first thing banks dumped on their books??

A solid discussion regarding every possible fee item should be included.

The lot is in a residential subdivision, no HOA, currently wooded and has never had a home on it before.

I would never recommend using this product on a wood subfloor.