This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

2) Would you hire a management company?

My business partner and I have spent the last 15 years fine tuning our property management business for single-family and small multi family investors.

We would absolutely be willing to rent to the applicant on her own.

I intend to invest long-distance in small to medium size multifamily properties and hire property managers, not sure how often physical checks will be needed.Appreciate any feedback or other bank recommendations, also looking into NBKC and LendingClub.

We do this with self-managing clients that transition to our company.

Out-of-state turnkey may sound attractive, but the cash flow is low and the perceived passivity is too high as you still need to manage the manager to be successful.Go to some local real estate meetups, talk to other investors near you and see where they are investing and at what price point.

Our efficient project management ensured timely, on-budget completion.

I have years of experience in real estate but more on the commercial investing and property management side.

Hello folks in Georgia / Atlanta,The Bigger Pockets Book On Rental Property Investing provides access to a comprehensive list of 34 forms that would be useful to a landlord including things like a lease agreement, application, late rent notice, move-in-move-out agreement, estoppel agreement, tenant phone questionnaire, pet addendum, etc. etc. etc.