Current annual income is $101k-Annual rent increases of 3% are realistic making annual income after 10 years $136k-If interest rates lower a refinance would lower annual mortgage expense-an added bonus over time would be appreciation (which will likely not happen within the next few years)Thank you for any input!

He doesn't have any signifcant savings (~10k), and his only income is social security and a small pension which comes out to a total of ~3k a month.  

For example, I have been informed from a couple of banks that even though my current Airbnb totally offsets the mortgage, they will not take the income from the property towards the DTI calculations but rather take the gross income from the Taxes filed and consider the mortgage amount as an expense, which was hard to understand.

https://www.ewg.org/news-insights/news-release/2024/03/over-240-california-community-organizations-unite-againstLate in the legislative process the tax was slipped into a 2022 law, A.B. 205, authorizing the California Public Utilities Commission, or CPUC, to add a fixed charge to electricity bills based on household income.

Best thing to do which most of them do not do is have a conversation about your goals and current income and assets.Getting your credit pulled 3-5 times can just hurt you in the long run if the lender has limited programs or extreme overlays.

Value of Net Operating Income, Cap rates.Cost to build approach has not kept up with inflation. 

Hi @Jamie Parker I was looking for passive income and the property was newly renovated so it seem easier to acquire with little to no work needed for tenants to move in immediately. 

I'm consider buying a property in South Denver to use as a MTR but am struggling to determine the appropriate monthly income in my underwriting.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $800,000

Cash invested: $400,000

Home I rent to a family of five

You are correct in your formula to make sure income covers expected costs.