Again, it’s break even but not a money maker yet.

Rent breaks even but we have about 250k in equity in the home.

Almost everyone here on BP will tell you that they wish they had started earlier, myself included.4.

I have seen crazy claims from ADU developers including attempts to indicate a value based on income.  

.: @Marcus Auerbachjust to dig into 'cash flow' a little more... would you agree that if you bought a solid property in Milwaukee in a solid neighborhood, using a DSCR loan, you will be break even or negative?

I own and self-manage a property that recently had two drip valves break causing excessive water usage for January, February and March.

Also, going in with realistic expectations, you aren't going to be able to pull 100% of your money out, but what if you pulled 80% out and you had a good rental property asset that will probably break even best case scenario? 

Qualifications typically center around whether the monthly rental income can at least break even (1.00 DSCR) with the monthly PITI.We would simply need to know the following information to determine eligibility, interest rate, and loan terms for DSCR financing:o Purchase or Refinanceo Property Addresso Monthly Rental incomeo Annual Taxeso Annual Insuranceo Estimated Credit ScoreThe documentation is relatively light as well, compared to a conventional loan underwritten to your personal income/taxes/debts.▪ Entity documents ▪ 2 months of bank statements ▪ Photo ID ▪ Lease agreement (refinance) ▪ Sales contract (purchase)

If as a partner, you had better have your attonrey draft a good JV agreement OR form an entity of which you both are partners, which would also include a formal operating agreement drafted by your attorney.If you choose to act in the lender capacity, your borker will handle all the paperwork you need other than your own internal paperwork requirements.

Not to mention, have fun explaining to your insurance carrier in the event of a claim that you knowingly hired vendors who were breaking the law and were uninsured.....but its ok because they signed a waiver.