So, its difficult to handle sudden changes in their expenses.

I was initially going to put down 10%-15% but the new lending requirements only required 5% down- allowing me to keep additional capital for reserves.How did you add value to the deal?

If so and I was to create LLC after buying my third or fourth property, is the cost of transfer to LLC at a later date really that expensive compared to the maintaining of LLC on just one property for few years?

Our expenses are about $1,400 monthly (plus the occasional oil fill up).

Do all DSCR lenders require me to use a property manager?

For those curious, if this applies to them, just follow these general principals: To qualify for the Section 121 exclusion you must: Must live in the home in the past 2 of the 5 years 24 months non consecutive required Must have owned the home for at least 2 years Only one spouse needs to meet the ownership testBoth spouses need to meet the use test Neither spouse has excluded a gain / used section 121 in the past two years Must file jointly for the 500k exclusion

@Joshua Smith - The biggest lessoned I learned is, it's expensive to own real estate.

I'm not as booked as I would like to be, and according to others they are going through similar circumstances...Do you expect immediate profits larger then your yearly mortgage and other expenses or do you give yourself a year or 2 like other business ventures?

If the cash flow of this property could get me beyond what is needed for my cost of living, my current W2 may not be a requirement, and I could make use of my Realtor's license in Indianapolis instead.

That is just a short stay long term rental.Anything over 30 days requires vetting of the TENANT and lease.